ISKANDAR PUTERI: The state government will grant a 30% rebate to 10 local councils involved in a tax reassessment process, says state executive councillor Datuk Mohd Jafni Md Shukor.
The Johor Housing and Local Government Committee chairman stated that the decision followed discussions and meetings with Johor Mentri Besar Datuk Onn Hafiz Ghazi.
"The Mentri Besar has agreed to give a 30% rebate on the new tax rates for the year 2025 to the 10 local councils involved.
"This is similar to what was given to the five local councils that went through the reassessment process last year," he said in his winding-up speech during the Johor state assembly here.
The 10 local councils involved are the Batu Pahat Municipal Council, Muar Municipal Council, Segamat Municipal Council, Pontian Municipal Council, Kota Tinggi District Council, Tangkak District Council, Yong Peng District Council, Simpang Renggam District Council, Mersing District Council, and Labis District Council.
Mohd Jafni noted that the tax assessment issue was raised by at least eight assemblymen in their respective speeches throughout the Johor state assembly.
"The last reassessment process for all local councils was done in 2013, which was seven years ago.
"This exceeded the five-year period stipulated under Section 137 of the Local Government Act 1976 (Act 171).
"It was originally scheduled to be done in 2019, but was postponed due to the Covid-19 pandemic, which has affected many people," he said.
He added that the valuation used by these 10 local authorities is based on the year 2020 instead of 2024.
"The property valuation for these local councils has increased by RM29.93bil, or 36%, over the span of seven years, translating to an average annual increase of 5%.
"To balance this significant rise in property values, the local councils have adjusted tax rates to ensure the impact on taxpayers is not too drastic," he said.
In December last year, the Johor government announced a similar 30% rebate for assessment tax to five other local councils carrying out the reassessment process.
These councils are the Pasir Gudang City Council, Iskandar Puteri City Council, Johor Baru City Council, Kluang Municipal Council, and Pengerang Municipal Council.