Cause for concern: Higher assessment may prompt business owners to charge more for their products and services. — THOMAS YONG/The Star
JOHOR BARU: The impending hike in assessment in at least five of the 16 local councils in Johor is causing concern among consumers who are worried that they may have to pay more for food and goods.
They said the higher assessment rates under the Johor Baru City Council (MBJB), Iskandar Puteri City Council (MBIP), Pasir Gudang City Council (MBPG), Kluang Municipal Council (MPK) and Pengerang Municipal Council (MPP) starting next year may prompt business owners to charge more for their products and services.
Bus operator R. Thiagarajan, 38, said apart from property owners under the five local councils, others who frequent the areas will also feel the snowball effect of the move, which would add to the rising cost of living.
“Although I am not directly affected by the move as my house is in Kulai, I believe I will also feel some of the impact as I regularly dine in Johor Baru.
“Even now, a simple meal with rice, a piece of chicken and some vegetables already costs about RM15. Just a few years back, I could have the same for RM8 or RM10.
“The increase in assessment may look like a small thing but since we also have to cope with price hikes in rice and other basic goods, it will definitely hit us hard,” he said.
Thiagarajan also said there could be shop owners taking advantage of the situation by raising their prices excessively.
Student management assistant Nurul Aisha Mohd Yusoff, 36, who is renting a house in Taman Perling here, said the tax hike may cause rentals to go up.
“I am grateful to have a good landlord who will still be able to afford the tax hike without increasing my rent.
“That may not be the case for many and I believe business owners who are renting shops may also be charged a higher rent.
“This will affect the price of goods they sell,” she said.
Johor Consumer Movement Association chairman Md Salleh Sadijo urged consumers to lodge reports with the Domestic Trade and Cost of Living Ministry if they come across unreasonable charges by traders.
“We understand that businesses may have to charge more as not only is the assessment rate going up, but the Overnight Policy Rate (OPR) and cost of goods have gone up.
“But there may also be opportunists who use the higher assessment to justify an excessive price increase.
“I urge consumers who come across such instances to lodge reports with the ministry,” said Md Salleh, adding that the rise in assessment was ill-timed.
Yesterday, The Star reported that the recent property evaluation exercise coupled with revisions in assessment rates has many property owners upset as they have to pay significantly higher assessment next year.
Johor housing and local government committee chairman Datuk Mohd Jafni Md Shukor said the hike was due to the increase in property values over the past decade.
The last time local councils in Johor – with the exception of the Kulai Municipal Council – conducted a property valuation and rate adjustment was in 2013, he added.
