THE revised quit rent rates for some 300,000 households in Penang would be marginal though the state targets to collect RM450million tax from next year following a change in land code classification, said Chief Minister Chow Kon Yeow.
He assured that the increase is only legislated for every ten years, so ratepayers will only pay the sum for the next decade and need not worry if there would be any sudden hike in the rates.
This revised quit rent came on the heels of the state's landmark move to reclassify 25 neighbourhoods from rural to urban localities, transforming Penang into a state with among the highest number of township - 42.
Among the new townships are Bayan Baru, Bukit Jambul and Balik Pulau while on the mainland, it is Seberang Jaya and Bandar Cassia.
Chow told a press conference that the affected 300,000 ratepayers would need to pay between RM10 and RM50 per parcel.
After the gazettement from January next year, quit rent for landed property owners, would be increased from 54 to 70 sen per sq meter or a minimum of RM70 per lot while for county (rural) landed properties, there is also a hike from 22 to 50 sen or a minimum of RM50 per sq meter.
The rates for strata title holders would only be revealed in 2027 when the revision comes into effect, said Chow.
Present was Penang Land and Minerals Department director Dr Faizal Kamarudin.
For industrial land, the quit rent revision is up to RM3.25 per sq meter.
There are also new quit rent rates for agriculture, with new categories for golf courses, quarries, federal land under the federal commissioner, and a nominal rate of RM50 for graveyards.
There would also be new rates for village homes of RM50 per lot, while land categorised as first grade, condition A, B and C, the rates imposed would be on the level of activities taking place on such land lots.
Chow said that in view of concerns over rising living costs, Penang would unveil a rebate mechanism of 32.5 percent on landowners followed by 20 percent in 2027 and 20 percent in 2028.
It is aimed at encouraging people to pay their quit rent and reduced arrears.
On an average, the land taxation contributes between RM100 million to RM145 million annually to the state coffers, which Chow says is even lower than the operating budget of Universiti Sains Malaysia (USM).
The revised quit rent structure will see the state collecting up to RM200 million yearly and ideally with the strata title holders' contribution, the sum can reach RM450 million, which is 45 percent of the total income that the state can earn annually, said Chow.
The RM450 million is a solid base for the state to begin its fiscal budget and with more income, the state can offer better public services to the ratepayers here.
The positivity would come from welfare, new infrastructure, tourism promotion and improving the essential services for the residents, Chow stressed.
On another matter, Chow said that the state will get the Railways Asset Corporations (RAC) to liaise with FELDA over the leasehold of land under the Malayan Sugar Manufacturer after the RAC revealed plans to develop an affordable housing scheme for squatters living in Kampung Manis at Butterworth.
Chow also said that the state public works department, has been entrusted to monitor land strips and hillslopes to prevent major landslides following the arrival of the rainy season. - September 19,2025.
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