GEORGE TOWN: Penang’s latest land tax revision is an unacceptable “appeal-after-shock” model that places the burden on the public to contest massive increases, says Datuk Seri Dr Wee Ka Siong.
Referring to one case among thousands, the MCA president said a landowner who had been paying RM745 annually since 1994 was recently issued a bill of RM489,775 for the same land – a 65,642% increase.
“You send a bill that shocks people and then tell them to appeal. I have never seen any government in the world raise taxes like this,” he said at Penang MCA’s Chinese New Year dinner on Wednesday.
Dr Wee said a “pre-bill anomaly processing model” should be adopted to identify and correct discrepancies or unusually high tax assessments before bills are issued, rather than reacting to complaints afterward.
He said there must be a ceiling cap and clear guiding principles, with adjustments implemented in stages, perhaps 20% to 30% per revision exercise.
Even if there had been lapses in updating taxation rates, he said it was unfair to impose the full burden on landowners in one go after decades of inaction.
“Other states also have this power, but to implement it to such an extreme level is unprecedented,” he said.
Dr Wee urged the DAP-led state government to apologise and rectify the matter, warning that voters would hold leaders accountable.
He also challenged DAP to table a motion at its national conference on July 12 to abolish what he described as “unreasonable land tax premiums”, urging the party to revoke the decision and return power to the people.
He urged the party’s adviser Lim Guan Eng and deputy secretary-general Steven Sim to raise the issue at the conference instead of merely voting on whether to resign en bloc while continuing to support the Madani government.
Under the Penang State Land Rules gazetted on Sept 11, 2025, industrial land is taxed at RM3.25 per sq m statewide, while commercial land is taxed at RM3.25 per sq m in urban areas and RM2.80 per sq m in rural areas.
There are about 230,000 plots with First Grade titles in Penang. Of these, 126,516 are residential lots, followed by agricultural (35,624), commercial (28,015), village housing (13,737) and industrial (3,499).
Dr Wee also expressed hope that MCA would win at least two state seats – one on the mainland and one on the island – in the next election.
“Penangites need more checks and balances at the state assembly level. That is how a two-party system should work.
“We have many Chinese-related issues. There have been no Chinese opposition members in the state assembly since 2008. Let us play the role of checks and balances,” he said.
Penang MCA chairman Datuk Tan Teik Cheng, who is also MCA vice-president, said the party had set up a state task force to assist landowners affected by the tax revision.
“Another case we are seriously looking into involves an increase of 46,482%, from RM60 to RM27,949.
“All our divisions are involved. We will take a measured, data-driven approach,” he said.
Also present at the dinner were MCA deputy president Datuk Dr Mah Hang Soon, secretary-general Datuk Chong Sin Woon, vice-president Datuk Seri Dr Wee Jeck Seng, and Chinese Consul-General in Penang Zhou Youbin.
