Malaysia

Apply for assessment tax exemption, Penang tells non-profit groups

Exco Jagdeep Singh Deo says Section 135 of Local Govt Act should be clearer

Updated 6 years ago · Published on 30 Sep 2020 3:25PM

Apply for assessment tax exemption, Penang tells non-profit groups
Penang exco Jagdeep Singh Deo (centre) at the Ramakrishna Ashrama orphanage recently. The centre has been opened since 1938. – RACHEL YEOH/The Vibes pic, September 30, 2020

by Rachel Yeoh

GEORGE TOWN – Penang has urged non-profit organisations to apply for an assessment tax exemption or reduction, saying it is one way of lightening their burden amid the Covid-19 pandemic.

This is no issue for groups that qualify to apply under Section 134 of the Local Government Act 1976, which allows exemptions or reduced rates for “public places for religious worship, licensed public burial grounds or crematoria, public schools, and public places for charitable purposes or for the purposes of science, literature or the fine arts, and not for pecuniary profit”.

However, said state Housing, Town, Country Planning and Local Government Committee chairman Jagdeep Singh Deo, Section 135 is not specific, posing a problem for some organisations.

Section 135 states that “when any holding or part thereof is used exclusively for recreational, social or welfare purposes, and not for pecuniary profit, the authority may at its discretion exempt such holding or such part thereof from the payment of all or any rates, or may reduce any rate imposed on such holding or such part thereof”.

“The question is, what does it mean by recreational, social or welfare? It is still very general,” Jagdeep told a press conference at the Ramakrishna Ashrama orphanage recently.

Talks have been held with the Penang Island City Council and Seberang Prai City Council to identify non-profit organisations that are eligible to apply under Section 135.

Jagdeep said the state government estimates that 1,467 such groups under the two councils’ jurisdiction can get an assessment tax exemption or reduction.

This translates into savings of RM2.56 million, he said.

“We had looked into this issue before Covid-19, but when it hit, things came to a standstill.

“I told the chief minister that (the tax exemption) has become even more important.

“Apart from public and health security, we want to rise economically, too. In order to do that, we must help organisations like this,” he said, referring to Ramakrishna Ashrama, which first opened its doors in 1938.

The orphanage already qualifies for a tax reduction, which sees the amount slashed from RM230,600 to RM20,754, but Jagdeep announced an exemption to help it through the virus crisis.

He added that the state government will continue helping those in need. – The Vibes, September 30, 2020

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