GEORGE TOWN, Sept 13 — Penang’s two local councils will be increasing the assessment rates on all properties within the state in 2020.

State local government, housing development and town and country planning committee chairman Jagdeep Singh Deo said the hike was due to higher spending costs.

“It has been 15 years since we reviewed the assessment rates and we are reviewing it now in accordance with the provisions of the law,” he told a press conference here today.

He said the Penang Island City Council (MBPP) and Seberang Perai Municipal Council (MPSP) have been recording an annual deficit budget since 2016.

Jagdeep did not disclose the percentage of increase in the rates when asked, saying instead that the hike will depend on the property type, location and size.

But Chinese newspaper Sin Chew Daily had previously reported that the rates could rise as much as 30 per cent.

The properties that will be reviewed total 322, 549 on the island and 327,401 on the mainland.

Notices on the increase will be sent to all property owners this month and property owners are given until October 14 to submit appeals against the new rates.

Jagdeep said the higher assessment rates will mean additional revenue of RM54,338,822 for MBPP and RM39,743,077.02 for MPSP next year.

However, he added that the extra revenue will barely be able to cover the expenditure of both councils.

“MBPP will be implementing 31 infrastructure projects between 2020 and 2022 at a cost of RM179.03 million so the extra RM54 million from the assessment rate increase does not cover this full sum,” he said.

Similarly, MPSP will be implementing 46 project between 2020 and 2022 at a cost of RM169.74 million which is more than the extra RM39 million from the increase in rates.

He said MBPP saw an increase in overall expenditures by RM196.391 million or 291 per cent in 2019 compared to 2005 while MPSP saw an increase of RM107 million or 784 per cent compared to 2005.

Jagdeep said that Penang’s assessment rates are still the lowest nationwide in comparison to properties in Kuala Lumpur, Petaling Jaya, Shah Alam, Subang Jaya and even Kota Kinabalu.