Assessment rates increase by 25% from next year

The Selangor government has approved a 25% increase in the assessment tax rate for local authorities (PBT) from Jan 1 2025.

State Local Government and Tourism Committee chairman Datuk Ng Suee Lim said the adjustment follows a review under the Local Government Act 1976, which requires the local authorities to update property valuation lists every five years. But the councils also allowed ratepayers to file their objections to the increase, to be decided on a case-by-case basis, with the final decision on the rate increase to be decided by the state government.

He said Sabak Bernam District Council has been using rate approved 38 years ago, the Kuala Langat municipal council 37 years ago. Nine other councils have not revised their rates for more than 20 years.

“This tax adjustment will be implemented over five years and is expected to boost the local councils’ revenue by RM355 million annually.

“These funds will be utilised to enhance infrastructure and public services across districts,” he was quoted as saying at a press conference at Wisma Dewan Undangan Negeri Selangor today.

Ng said the state government would continue exempting assessment tax for all low-cost housing, including SelangorKu homes throughout the state, with financial implications of nearly RM60 million.

Ng said the councils received 148,000 objections from ratepayers who voiced their concerns with the assessment tax increase.

“We went beyond and investigated 287,000 objections, and validated 230,000 of them,” he said.

Ng also pointed out that with the implementation of the 25% tax increase cap, property owners will receive a discount in total assessments payable of up to 75%.

“For example, if an apartment owner paid an assessment tax of RM100 per year in 2024, with the new property revaluation, the assessment tax should be RM200 per year in 2025.

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