Numerous complaints received over Penang land tax hike, says MCA


GEORGE TOWN: A special committee set up by Penang MCA to assist landowners affected by the land tax hike has received numerous complaints, says Datuk Seri Dr Wee Ka Siong.

The MCA president said complaints came through the party's Bagan, Batu Kawan and Bukit Mertajam divisions, and that appeals have been submitted to relevant authorities.

"The complaints are genuine. Penang MCA has received them and the issue has been widely reported.

"Even DAP adviser Lim Guan Eng held press conferences to criticise his own DAP-led state government over the matter.

"It has proven genuine and not fabricated. What say you, CM Chow?" asked Dr Wee on Saturday (March 21), referring to Penang Chief Minister Chow Kon Yeow.

In recent weeks, the new land tax calculation in Penang has seen increases of hundreds or even thousands of times, with some owners of village houses and low-cost strata units describing the hike as an "unacceptable" financial burden.

Lim, who is also Bagan MP, has held several press conferences and brought affected landowners to share their concerns.

Chow said that before implementing the 2026 tax rates, the Penang government adopted a prudent approach to balance revenue needs with affordability for property owners.

He added that the state remains open to appeals, discussions and on-the-ground reviews of submitted cases, stressing that it is not a "shock first, appeal later" approach.

In response, Dr Wee said MCA was duty-bound to raise the issue, rejecting claims that the party was politicising the matter.

"Is it wrong for MCA to raise the people's issues?

"When quit rent increases by about 500 to 4,000 times, is this reasonable?" he asked, adding that the real issue had been sidestepped.

"Do not divert the issue by giving motherhood statements. The people want answers on the hike, not general justifications," he said.

The revised land tax structure stems from the Penang State Land Rules gazetted on Sept 11, 2025, marking the first major review in about 30 years.

The new framework is based on land use, size, location and updated rates.

The rules, which took effect this year, standardise assessments across categories, including First Grade titles without specified land-use conditions.

Dr Wee had earlier described the Penang government's move as an unacceptable "appeal-after-shock" model that places the burden on the public to contest steep increases.

He said there should be a ceiling cap and clear guiding principles, with adjustments implemented in stages, such as 20% to 30% per review.

Even if there had been lapses in updating tax rates, he said it was unfair to impose the full burden on landowners all at once after decades of inaction.

He added that implementing such increases at this scale is unprecedented.

 

 

 

 

 

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Penang , Land Tax , MCA

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