GEORGE TOWN: Landowners unable to settle land tax payments in a lump sum may apply to pay by instalments within the same year, the Chief Minister announced.
Chow Kon Yeow (pic) said the state executive council agreed to this, among others, after reviewing public feedback and the first round of appeals over the revised 2026 land tax.
“Landowners facing financial constraints may apply to the Land Administrator to pay by instalments within the same year, subject to approval by the Land Administrator,” he told a press conference here yesterday.
Chow said instalment payment applications for the 2026 assessment must be submitted before May 31, and before April 30 for subsequent years.
He said the duration and amount of the instalments would be determined by the Land Administrator based on the merits of each application.
The state government received 1,025 appeals from landowners as of 9am yesterday following the implementation of the revised land tax structure.
Of these, 515 appeals were on higher tax rates arising from reassessment of land based on current usage, mainly 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 adjustments to ensure a fair and consistent tax system.
Land tax for commercial and industrial buildings built across multiple lots will now be calculated based on actual land size rather than subjected to minimum rates.
For approved housing schemes where construction has yet to begin or abandoned projects, landowners may submit appeals to seek a reduction in tax rates for the current year.
“The state has also agreed to revise the land tax structure for quarry operators following an appeal by the Penang Quarry Association.
“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,” he said.
Lots used as buffer zones, access roads, open land or inactive quarry sites will be charged the minimum industrial rate of RM1,200 per lot, provided it is not lower than the tax paid prior to the 2026 revision.
He said the state exco also agreed to consider an appeal by the Penang Fruit Farmers Association to reduce land tax rate for durian cultivation from RM800 per ha to RM80, aligning it with the rate for other fruit crops.
“Business and industrial land tax will also be calculated according to the actual land area instead of applying minimum charges of RM325 for business lots and RM1,200 for industrial lots,” he added.
