GEORGE TOWN: Penang's revised land tax formula, which will take effect in 2026, is said to end the disparity between First Grade and non-First Grade landowners.
The revision comes after more than 30 years without a rate review.
Chief Minister Chow Kon Yeow said the new tax rates for First Grade land, under Conditions A, B and C, as well as the No Condition category, are based on current land use and the categories gazetted under the Penang Land (Amendment) Rules 2025.
"This means that if the current use of a site is residential, the tax is calculated by multiplying the land area by the applicable residential tax rate, which is RM0.70 per square metre for urban land and RM0.50 per square metre for rural land," he said at a press conference at his Komtar office on Wednesday (March 4).
He said that of the 370,000 land tax bills issued, the Penang State Land and Mines Office has so far received only 300 appeals. Taxpayers are therefore encouraged to file appeals if they encounter any issues.
Chow expressed regret that certain parties have chosen to sensationalise the increase without first understanding the calculation method and the actual land use involved.
He added that the state government has introduced several measures to help landowners adjust to the new rates, including rebates of up to 50%, a 100% waiver of late payment penalties, and a more flexible appeal mechanism.
The state government implemented the land tax rate revision and the reclassification of rural to urban land throughout Penang under Section 101 of the National Land Code (Act 828), effective Jan 1, involving nearly 370,000 land titles. – Bernama
