KUALA LUMPUR: The implementation of the parcel tax system beginning Jan 1 in Kuala Lumpur, will see homeowners, especially those from the B40 (low-income) group, enjoying a yearly flat rate of RM15 and RM20 for leasehold and freehold properties, respectively.
Announcing this here today, Federal Territories Minister Khalid Abdul Samad, said this will involve strata properties from low-cost housing schemes and the People’s Housing Programme (PPR), regardless of size.
On average, residential types of apartments with an overall size of 96 sq m which belong to owners from the M40 (middle-income) group, are subject to a minimum yearly parcel tax of RM20 and RM25 for leasehold and freehold properties, respectively.
Kuala Lumpur has followed Selangor, Penang and Malacca in implementing a transition from land tax to parcel tax, Khalid said, adding that the government’s intention was to undertake the transition without raising the cost of living in the capital.
He explained that the new tax system is also seen as a mechanism to rectify and rationalise taxation on strata properties so that it is more systematic, transparent and equitable for owners.
Establishing individual parcel tax accounts for each parcel owner will also enable such owners with no arrears of tax, to continue transactions such as transfers, leases and mortgages without any obstruction. - Bernama
