KUCHING, Dec 30: The hike in quit rent in Sarawak is not more than 100 per cent from the old rate, said Land and Survey Department director Datu Abdullah Julaihi in refuting inaccurate and misleading claims that the revised rates was an increase of between 400 and 700 per cent.
In fact, Abdullah emphasised that the revised quit rent rates would see some reduction in taxes between seven and 20 per cent for some land uses.
“Moreover, the increase only involved eight per cent or 59,710 out of a total 734,388 registered land properties for commercial, industrial, office and recreational use in Sarawak.
“Some 92 per cent or 674,678 lands owned by people in Sarawak remained exempted from land tax.
“As such, the claims and calculations that the increase in the revised quit rent rates to 400 to 700 per cent are inaccurate and misleading,” he said in a statement today.
In a comparison chart between the revised quit rent rate that will come into effect on Jan 1, 2023 and the old quit rent rate, the quit rent for shophouse under Grade III for Town Land category will see a 100 per cent increase from RM0.27 to RM0.54 per square metre(/m2), while for Grade I is from RM1.08 to RM1.62/m2 involves 50 per cent hike and for Grade II from RM0.81 to RM1.08/m2 (33 per cent hike).
As for office, the rate for Grade 1 for Town Land category involved an increase of 10 per cent from RM0.21 to RM0.23/m2, while for Grade II an increase of 11 per cent from RM0.18 to RM0.20/m2 and the rate for Grade II will see tax cut of seven percent from RM0.15 to RM0.14/m2.
Abdullah also pointed out that the new quit rent rate is among the lowest in Malaysia with reference to major cities such as Kuala Lumpur, Shah Alam, Ipoh, George Town and Johor Bahru.
“For example, the commercial quit rent rate for land properties for commercial use in Kuala Lumpur is RM4.60/m2; Shah Alam, Selangor (RM3.30/m2); Ipoh, Perak (RM3.08/m2); George Town, Penang (RM2.58/m2); and Johor Bahru, Johor (RM2.16/m2),” he said.
This rebuttal came following criticism from Democratic Action Party (DAP) chairman Chong Chieng Jen who had yesterday (Dec 29) urged the Sarawak government to reverse its decision to impose huge increases in quit rent on various land properties that would badly affect the business and industry sector. — DayakDaily