‘Be ready to provide better local council services’

WITH the hike in assessment tax rates, local councils in Johor will be expected to provide better services.

Universiti Tun Hussein Onn Malaysia (UTHM) real estate management department lecturer Assoc Prof Dr Azlina Md Yassin said the five local councils that imposed the new assessment rate should justify the hike by providing better services.

The five local councils are Johor Baru City Council (MBJB), Iskandar Puteri City Council (MBIP), Pasir Gudang City Council (MBPG), Kluang Municipal Council (MPK) and Pengerang Municipal Council (MPP).

“The five local councils’ revenue will surely increase with the new assessment rate but what will the taxpayers get in return? It must be a win-win for both sides.

“Expectations towards the local councils will be higher. People will demand better service in terms of road maintenance, cleanliness and enforcement,” she told StarMetro.

Azlina said tenants should also check their agreements to determine whether the increase in assessment rates would see their monthly rental go up.

She said it would be unfair for tenants if property owners decide to defray the increase by hiking their rental.

“If property owners decide to increase their rental because of the spike in assessment rates, they should draw up new agreements with their tenants that are mutually agreeable.”

Universiti Teknologi Malaysia (UTM) Real Estate Architecture and Surveying Faculty’s Assoc Prof Dr Muhammad Najib Muhammad Razali said local councils had the right to review the assessment rate for properties that fall under their jurisdictions.

“However, at this juncture, with economic pressure due to the increase in the cost of living, middle- and lower-income earners will feel burdened by the new assessment rates.

“Normally, a new assessment rate is because of the increase in property prices due to new developments in the residential areas such as the construction of public transportation like a monorail, light rail transit or even the Rapid Transit System (RTS) linking Johor Baru and Singapore.

“These development projects have in a way directly caused speculation, which drives up property prices, especially in Johor as we are seeing a lot of infrastructure developments.”

When asked whether filing appeals at their respective local councils would work, Muhammad Najib said he would urge ratepayers to do so.

He said according to the law, tax increases did not require public participation as the revenue collected by the local councils could ensure development in an area.

“As long as there is strong justification, the government or local councils can introduce or increase any tax it deems necessary.

“When an increase occurs, property owners can object within a certain period if they feel the valuation is unreasonable.”