No penalty until new rate announced, Putrajaya assures KL owners

KUALA LUMPUR, Dec 8 — Datuk Seri Tengku Adnan Tengku Mansor confirmed today that KL property owners will not be penalised for paying old assessment rates until the quantum of the city’s proposed tax hike is announced by March next year.
The Federal Territories Minister’s announcement today will lay to rest uncertainty over the debacle that has seen city folk up in arms over the government’s sudden decision to raise property taxes.
“The rate, I’ll decide whether I want to charge, as I’ve said, we are going to postpone the rate until we finalise with the panel hearing, the latest is March.
“We have also decided that if you don’t pay us until whatever date I’ve decided, the last day, no penalty will be charged to the rakyat,” he told reporters after the ground-breaking ceremony of Batu Umno division new building here.
With only eight more days until the deadline for protest letters expires on December 17, the minister said KL City Hall (DBKL) has only received feedback from less than 11,000 people so far.
Resident associations such as the one representing the Overseas Union Garden (OUG) township has vowed to send in protest letters by the truckload, the day before the deadline.
The proposed increase on the property valuation led to public outcry since last month, after property owners received notices from DBKL, informing them of hikes between 100 and 250 per cent to their land valuation.
The notice did not state that DBKL is also considering a revision of the assessment rate, which is 6 per cent for residential properties, and 12 per cent for commercial.
The issue was exacerbated by the confusion arising from the conflicting announcements made that has left taxpayers uncertain over how much and when they must fork out for their bi-annual assessment payments.
Today, Tengku Adnan said the DBKL is already evaluating the protest letters, and the panel will also go to certain areas where a large number of protest letters were from, to meet the complainants.
When asked if two weeks is sufficient for DBKL staff to go through every single objection letter, the minister hinted that the City Hall does not have to vet through all the letters before it sends out the final notices on the land valuation on January 1, as they will only be considered for the decision on the assessment rate, which will be made by March.
“If you are the owner of the property, won’t you like it to be at that value? Come on, that one I don’t think there is any dispute.
“The dispute is how much I’m going to charge them. I won’t make it difficult for the rakyat,” he said.
He also pointed out that DBKL’s valuation on the rental yield is lower than the market rate.
“Under the law, every year, DBKL has to issue a notice to the taxpayers, so on the 1st January, I will send out the actual rental valuation.
“Anyway, on the 1st of January, I’ll still issue the actual rental value, after 21 years.
“The rate, I’ll decide because we are still hearing, the panel has been formed, then I’ll decide whether I want to reduce, at what percentage, maybe I want to give a rebate, that’s up to me what I’m going to do later,” the Putrajaya MP said.