Rate increase follows property value — Tengku Adnan

KUALA LUMPUR: The sudden increase in assessment rates in the city is to correlate with the rising cost of property, says Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor.

Interrupted by opposition MPs before he began winding up the Budget 2014 policy stage debate, Tengku Adnan said the revision of the rates was necessary as assessment had remained the same for the past 21 years.

“But a terraced house which cost RM80,000 about 21 years ago is more than RM400,000 now,” said Tengku Adnan.

He said the notice on the review of the assessment rate is not final and the residents have until Dec 17 to submit their feedback.

Tengku Adnan was responding to Segambut MP Lim Lip Eng who criticised the “steep increase of more than 200%”.

Lim suggested that the ministry order City Hall (DBKL) to withdraw the “crazy” notice as the hike is unreasonable.

“If the people don’t agree, they can write to DBKL and we will reconsider. We give importance to the people’s welfare first,” he said.

Bukit Bintang MP Fong Kui Lun, however, pointed out that residents in old settlements like Taman Seputeh could not afford to fork out tens of thousands of ringgit for assessment as the house owners are mostly retirees.

“The assessment rate for houses in Taman Seputeh has increased from RM25,000 to RM50,000. This is burdensome,” said Fong.

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This article first appeared in The Edge Financial Daily, on November 14, 2013.


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