KUALA LUMPUR: Any plans to review assessment tax rates must take into consideration the current inflation rate to ensure that any increase does not compromise the welfare of the people, Housing and Local Government Minister Nga Kor Ming said.
Referring to the Ipoh City Council's proposed assessment rate hike set for implementation next year, Nga said any increase should be gradual rather than drastic to avoid burdening the public.
Nga, who is also the Teluk Intan Member of Parliament, suggested that the Ipoh City Council emulate Penang, where small but consistent increases in assessment rates have been well received by residents.
"The government recommends that any tax increase be implemented gradually, considering the current inflation rate - For example, a rise of only two to five per cent every two years.
"This approach has been successfully adopted in Penang, where small yet consistent increases have garnered public acceptance.
"I am confident Ipoh could consider and adopt a similar strategy to avoid overburdening its people," he told reporters after launching the CSR Tree Planting Ceremony by Wei Dat Steel Wire Sdn Bhd at Taman Polo, Ipoh, Perak.
Nga also said the issue of assessment taxes was recently discussed at the National Council for Local Government.
"The government's policy is clear that this is a government of the people, for the people.
"All objections and feedback will be thoroughly reviewed to ensure that decisions made are fair," he added.
Bernama reported that Ipoh Mayor Datuk Rumaizi Baharin @ Md Daud, in a statement on Nov 15, had said the decision whether to maintain or lower the new tax rate depends on the objections made by the people of Ipoh.
Rumaizi had also said that the percentage rate of tax charged in the city of Ipoh which is considered the highest in Peninsular Malaysia which is 16.5 per cent (has been lowered to nine per cent for the residential and business building category.
His statement, however, did not sit down well with the 'Ipoh Tax Objection Movement'. Its head, Ahmad Humaizi Din Mustafaha said, from the feedback received, the increase in the nine per cent tax rate was not agreed upon by many because it was high and burdensome to property owners.