GEORGE TOWN: Landowners having trouble making their one-off land tax payment may now apply to pay by instalments within the same year, subject to approval by the Land Administrator.
Penang Chief Minister Chow Kon Yeow said the state executive council agreed to the measure after receiving public feedback and after the first round of appeals on the revised 2026 land tax.
Applications for instalment payments for the 2026 assessment must be submitted before May 31, while requests for subsequent years must be made before April 30 annually, he said.
The number of instalments and payment schedule would be determined by the Land Administrator based on the merits of each application,” Chow told a press conference at Komtar on Thursday (March 12).
The state government has received 1,025 appeals from landowners statewide as of 9am, Thursday, after the implementation of the revised land tax structure.
Of these, 515 appeals involved concerns over higher tax rates arising from the reassessment of land based on current usage, particularly for first-grade titles and land parcels without specific land categories or conditions.
Chow said the state government had reviewed the appeals and agreed to several refinements to ensure the taxation system remains fair and consistent.
Among the changes, land tax for commercial and industrial buildings built across multiple lots will now be calculated based on the actual land area rather than being subject to minimum rates.
For approved housing schemes where construction has yet to begin or abandoned projects, landowners may submit appeals for a reduction in tax rates for the current year.
The state government has also agreed to revise the land tax structure for quarry operators following an appeal by the Penang Quarry Association.
Chow said the RM3.25 quarry tax rate will only apply to lots containing quarry-related structures such as crushing plants, workshops, storage facilities and management offices.
Lots used as buffer zones, access roads, open land or inactive quarry sites will instead be charged the minimum industrial rate of RM1,200 per lot, provided it is not lower than the tax paid before the 2026 revision.
He said the decision would result in a tax reduction of about RM5mil.
Chow added that the state executive council had also agreed to consider an appeal by the Penang Fruit Farmers Association to reduce the land tax rate for durian cultivation from RM800 per hectare to RM80 per hectare, aligning it with the rate imposed on other fruit crops.
The state government also agreed that business and industrial land tax will be calculated according to the actual land area instead of applying minimum charges of RM325 for business lots and RM1,200 for industrial lots.
Chow said the refinements were intended to address inconsistencies and ensure a more equitable land tax framework across the state.
He urged affected landowners to submit their appeals through the relevant district and land offices if they require further clarification or reassessment of their tax rates.
