High cost of living in S'gor due to rise in property-related taxes: Political economist

KUALA LUMPUR: The Selangor government's move in raising property-related taxes and other costs has led to the rise in the cost of living in the state, according to political economist Isham Jalil.
He said when such costs went up, it gave pressure to the business sector, in terms of the cost of doing business, which eventually had adverse effects on consumers.
The Harvard University graduate also said that the Selangor government's revenue had increased after it raised property-related taxes since the opposition took over the state government in 2008.
"This has led to the high cost (of living), especially in the city areas," he said in an interview during Bernama News Channel's 'Ruang Bicara Khas' programme hosted by Sherkawi Jirim.
Isham, who had once served the Economic Planning Unit in the Prime Minister's Department, cited the increase of rental for night market lots which forced traders to raise the prices of goods.
He claimed that the current situation in Selangor and Penang saw the development expenditure of the two state governments being smaller than the allocations under the Barisan Nasional (BN) administration.
According to Isham, the property-related taxes in both states under BN were not as high as the current rates.
"That's why I always mention that the BN-led government is always (good) for growth and is business-friendly. As for the opposition-led state governments, they are bad for the economy, business, and the people," he said.
Isham said the government was aware that the Chinese community, who mostly earned a living by doing business, were concerned about the economy, the cost of doing business and the cost of living.
As such, the government had set up the special Cabinet committee to study and tackle the issue of rising cost of living, he added. — Bernama