GEORGE TOWN, Nov 28 –– The Penang Ratepayers Association has called on the state government and city councils to defer plans to increase quit rent, assessment rates and parking rates next year.

Association president Lee Kim Noor said the timing to increase the rates was inappropriate due to the current high inflation, high water tariffs and with the petrol subsidy cuts looming.

"We, ratepayers, certainly would like to urge the state government not to put any more burden on the ratepayers and stop any increases,” she said.

She said any increase should be done gradually and minimally instead of sudden high increases.

"It is the wish of ratepayers that Penang state government should spend within its means and not operate on a negative budget, which eventually will become a burden to the ratepayers,” she said.

She called on the state government to hold public dialogue sessions and town hall sessions with ratepayers before imposing any increase in quit rent, assessment rates and parking fees.

"Another way is to include NGOs like Ratepayers Penang and other civil societies in a special task force set up under Section 101 of the National Land Code,” she said.

She said it was not true that the quit rent was not reviewed for 30 years as claimed by the state administration when announcing the plan to hike up the land tax.

"In 2019, Penang, which has a high number of high rises, saw a windfall when parcel quit rent was introduced,” she said.

She said at that time, the association raised an issue on the formula used to calculate the parcel quit rent and asked for it to be reviewed but their objections were ignored.

She said the number of landed properties and high rises in the state have increased multi-fold in the past 30 years so the total collection of quit rent for old and new buildings should be sufficient revenue for the state administration.

"The immediate action, before the increases, is to set up a Public Accounts Committee to look at the administration to improve efficiency and cost cutting considering a high percentage of the expenditure is on emoluments i.e in paying salaries,” she said.

She said the announcement by both city councils, Penang Island City Council (MBPP) and Seberang Perai City Council (MBSP), to increase assessment rates next year was also unnecessary.

"The last rate adjustment and increase was in 2020 and despite minimal public engagement, another increase was announced,” she said.

She said both councils should prevent leakages and ensure its costs are within control instead of increasing the assessment rates to increase its revenue.

"Ratepayers Penang urges the local councils to find smarter ways to collect more than RM50 million that defaulters owed to MBPP,” she said.

She said if the council can recover the amount, there is no need to increase the assessment.

Similarly, she said it is unacceptable to use the same excuse that because there was no increase for many years, it is justified for MBPP to increase parking fees next year.

She said Penang island’s parking rate is one of the highest while in comparison, the parking fees in Seberang Perai is only 40 sen per hour.

She said the city council cannot claim that it needed to increase the fees to maintain the smart parking system sensors.

"Before deciding on a system, it is important that the relevant authorities look at long term maintenance costs first to avoid increase in parking fees,” she said.

She said the parking fees should be maintained at 40 sen per half an hour and extend longer parking hours instead.

Lee handed a memorandum raising these points to the Penang Chief Minister Chow Kon Yeow’s office and the Opposition front at the state legislative assembly today.

Over the past few months, the Penang government and city councils had announced plans to increase quit rent, assessment rates and parking fees next year.

The new parking rates on the island will be 60 sen for 30 minutes, up from 40 sen, and RM9 for a full day, up from RM6.