Real estate sector on track for healthy year
With most property developers delivering earnings broadly in line with expectations in the recently concluded results season...
Individual residences currently pay RM0.54 psm.
There will, however, be a minimum payment of RM70 per lot for land in urban areas statewide, such as in Bayan Baru, Jelutong, Tanjong Bungah and Bukit Mertajam.
Announcing the new rates for several building and land categories today, chief minister Chow Kon Yeow said some 370,000 title holders would be affected.
He also said there would not be any additional hikes for the next decade.
The last time the rates were reviewed was 30 years ago, he said.
“This (delay) has deprived the state government of an increase in revenue for a long time.
“Tax arrears and leakages in quit rent collections have also increased as tax data adjustments could not be done comprehensively,” he said.
Chow, who is also the state finance, economic and land development committee chairman, said the revised quit rent rates will help the state government raise about RM200 million for 2026, which can be channelled to welfare programmes and cost-of-living assistance schemes.
Meanwhile, country land will see an increase in rates from RM0.22 to RM0.50 psm with a minimum payment of RM50 per lot.
Additionally, for the industrial category, the quit rent rate has been raised from RM1.29 to RM3.25 psm, regardless of whether they are located in urban or rural areas.
As for businesses, the rate has been raised to RM3.25 psm in urban areas and RM2.80 psm in rural areas with a minimum payment of between RM280 and RM325 for land less than 100 psm or 1,076 per sq ft (psf).
To minimise the financial burden for ratepayers, a 32.5% tax rebate will be implemented next year, followed by a 20% rebate in 2027 and 2028.
The state government has also agreed to provide a 100% penalty exemption on quit rent and land tax arrears from Jan 1 to Dec 31 next year, as well as a 50% discount for premium rates for the conversion of land categories from agriculture to residential in a bid to encourage land title conversions.
