A FORMER assemblyman has called on the local authorities to consider periodical payments for ratepayers who have incurred arrears in view of their struggles with rising living costs.
Following the revelation that both - the Penang Island City Council and the Seberang Prai City Council have incurred up to some RM50 million in arrears from the annual assessments, S. Raveentharan urged both councils to find alternative payment modes.
There is also a need to come up with special payment segments for senior citizens to the disabled and single mothers as well as the destitute poor.
"What is the point of increasing the rates when one cannot afford to pay even the old rates? They would rather default than pay if they do not earn enough,”.
During almost recessionary times, people tend to place priority on other aspects from ensuring enough food to healthcare and looking for stable jobs, said Raveentharan.
Settling arrears comes second, especially if they sincerely cannot pay, he added.
The local authorities must screen the ratepayers and liaise with the welfare authorities to see if the ratepayers come under the hardship categories.
Then, an alternative payment mode can be drawn up to ensure that at least the ratepayers are incentivised to settle their dues, said Raveentharan.
It was reported that the MBSP is grappling with RM30.57 million in uncollected assessment fees as of October 22.
Penang local government committee chairman Jason H’ng Mooi Lye said efforts are ongoing to recover the arrears owed to MBSP, the country’s largest council in terms of jurisdiction area.
This includes the involvement of debt collectors, the activation of a special task force to handle delinquent accounts, and lucky draws for ratepayers who pay their dues on time.
H’ng said MBSP reported revenue of RM304.4 million versus an expenditure of RM259 million recently.
He said the council is expecting a significant boost in revenue next year, with a new property valuation list expected to generate an additional RM10.8 million in assessment taxes.
H’ng also said the MBPP) is seeing rising operational costs, with staff salaries and emoluments set to take up 43.3% of its total expenditure in 2025.
He said the increase follows the adjustment of the salaries of civil servants under the new public service remuneration scheme (SSPA), which came into effect later this month.
The salary adjustment is expected to add RM15 million to its payroll bill for next year, he said.
H’ng said the council’s workforce consists of 3,630 personnel, including 3,458 permanent staff and 172 contract workers. - December 10, 2024.
