Living in JB 3 (Johore)

[FHBH12]

But I saw some assessment notices for residential units showing a rate 0.2% which is meant for commercial units, wonder if that was a mistake.

It is 0.13% on my notice... So 0.13% of 686k is about $891.80 RM.

 

[leongyo]

This is what I found on the Internet, with the all mighty google tool. http://www.nusajaya.my/index.php?id=52530276037

All property owners in Johor have to pay two types of taxes:
- Cukai Harta (Property Tax), paid once every year to the state of Johor;
- Cukai Taksiran (Quit rent / Assessment tax / Cukai Tanah), paid in advance 6 monthly to the local authority;

The Quit rent (Cukai Taksiran) is based on the (theoretical) rental value of a property. The local authority has a list of rental values which it updates at least every 5 years and the tax is 6% of this value (at least in KL, we failed to find out the Johor Bahru rate, but we assume it is the same).

Property Tax (Cukai Harta) on the other hand is being levied as a percentage of the property value (in Johor 0.14% for residential houses). The property value is being determined by a special department within the administration - and the last valuation of properties had been done in the 80s according to the Mentri Besar. This means currently the basis of the property tax are house values from 30 years ago. Needless to say that house prices have since risen.

Thanks Reds! Very useful info...

 

[ginfreely]

This is what I found on the Internet, with the all mighty google tool. http://www.nusajaya.my/index.php?id=52530276037

All property owners in Johor have to pay two types of taxes:
- Cukai Harta (Property Tax), paid once every year to the state of Johor;
- Cukai Taksiran (Quit rent / Assessment tax / Cukai Tanah), paid in advance 6 monthly to the local authority;

.............

Cukai harta is billed twice a year, based on last year the tax was 0.14% of the house value. The tax is split into two bills and payment for first half and second half of the year.

 

[RedsYNWA]

Cukai harta is billed twice a year, based on last year the tax was 0.14% of the house value. The tax is split into two bills and payment for first half and second half of the year.

Thanks for the clarification. Waiting to see my Cukai Harta for the upcoming bill

 

[snowbird]

It is 0.13% on my notice... So 0.13% of 686k is about $891.80 RM.

You may not have to pay this amount at all.
According to today's ST report, the authorities is putting off the plan to collect more tax based on the new assessment "indefinitely" following widespread public outrage.
The opposition is also planning a mass protest on 16/12/13 in KL on this issue that caused undue hardship on the rakyat.
I guess the plan to increase revenue collection will be going ahead to buff up the national kitty but they may introduce different rates for different property with the low cost housing having only a minimum increase, something like HDB against private property.

 

[FHBH12]

You may not have to pay this amount at all.
According to today's ST report, the authorities is putting off the plan to collect more tax based on the new assessment "indefinitely" following widespread public outrage.
The opposition is also planning a mass protest on 16/12/13 in KL on this issue that caused undue hardship on the rakyat.
I guess the plan to increase revenue collection will be going ahead to buff up the national kitty but they may introduce different rates for different property with the low cost housing having only a minimum increase, something like HDB against private property.

I actually want it to be increased but the tax expenditure must be transparent and spent on improving infrastructure and safety, and not into somebody's pocket.

 

[kawan2sgmy]

My condo mgmt will be calling for a meeting with the owners to discuss this issue but unfortunately I won't be able to attend.
M'sia government should hold a consultation/dialogue with her people to gather feedback before implementing to avoid flip and flop...

You may not have to pay this amount at all.

 

[FHBH12]

My condo mgmt will be calling for a meeting with the owners to discuss this issue but unfortunately I won't be able to attend.
M'sia government should hold a consultation/dialogue with her people to gather feedback before implementing to avoid flip and flop...

The policy should be a readjustment to market rate every year or every few years. A quantum jump of 2-3 times is a policy suicide. Singapore has been lucky to have this type of neighbor for so long, if not Singapore will be wiped out long ago. I think BN is on the path to losing more seats at the next election.

 

[malpaso]

I actually want it to be increased but the tax expenditure must be transparent and spent on improving infrastructure and safety, and not into somebody's pocket.

in that case, i don't want it increased. because it will go into someone's pocket. for sure. i almost guarantee it :(

Today's STAR paper. Selangor MB pay hike from 14K RM a month to 30K RM a month. speaker pay rise from 6.5K RM to 18K RM pm.

 

[snowbird]

I actually want it to be increased but the tax expenditure must be transparent and spent on improving infrastructure and safety, and not into somebody's pocket.

Well, those extra revenue collected, many people will be too eager to spent on even more expensive things, compared to the previous year like :

Laptop and printer for RM11,845 or 246 per cent higher than the market price of RM3,428
LCD TV/DVD player for RM16,100 or 638 per cent higher than the market price of RM2,182
Marine binoculars for RM56,350 or 2,805 per cent higher than the market price of RM1,940
or better still, go for even bigger projects like:

Tourism Malaysia booked RM194 million (72 per cent) of RM269.7 million of advertisements without tender, against treasury regulations
National Sports Council (NSC) bought 23 horses via direct negotiation for RM5.7 million without approval from Finance Ministry, but 18 horses were unqualified to race
etc, etc

You see here, money will be extremely "well spent" and transparent too.

Read more here :
http://www.theborneopost.com/2011/10/29/auditor-general%E2%80%99s-report-trim-wastage-and-minimise-corruption/

 

[FHBH12]

in that case, i don't want it increased. because it will go into someone's pocket. for sure. i almost guarantee it :(

Today's STAR paper. Selangor MB pay hike from 14K RM a month to 30K RM a month. speaker pay rise from 6.5K RM to 18K RM pm.

Low pay has low dignity. Men-in-white said one. Malaysia just follows.

 

[FHBH12]

Well, those extra revenue collected, many people will be too eager to spent on even more expensive things, compared to the previous year like :

Laptop and printer for RM11,845 or 246 per cent higher than the market price of RM3,428
LCD TV/DVD player for RM16,100 or 638 per cent higher than the market price of RM2,182
Marine binoculars for RM56,350 or 2,805 per cent higher than the market price of RM1,940
or better still, go for even bigger projects like:

Tourism Malaysia booked RM194 million (72 per cent) of RM269.7 million of advertisements without tender, against treasury regulations
National Sports Council (NSC) bought 23 horses via direct negotiation for RM5.7 million without approval from Finance Ministry, but 18 horses were unqualified to race
etc, etc

You see here, money will be extremely "well spent" and transparent too.

Read more here :
http://www.theborneopost.com/2011/10/29/auditor-general%E2%80%99s-report-trim-wastage-and-minimise-corruption/

That is y u need higher pay to reduce corruption. Men-in-white said one.

 

[FHBH12]

You may not have to pay this amount at all.
According to today's ST report, the authorities is putting off the plan to collect more tax based on the new assessment "indefinitely" following widespread public outrage.
The opposition is also planning a mass protest on 16/12/13 in KL on this issue that caused undue hardship on the rakyat.
I guess the plan to increase revenue collection will be going ahead to buff up the national kitty but they may introduce different rates for different property with the low cost housing having only a minimum increase, something like HDB against private property.

KL property tax hike deferred
Nov 29, 2013 - PropertyGuru.com.my

The proposed property tax hike of 100 to 250 percent in Kuala Lumpur was temporarily shelved by the authorities due to complaints by many homeowners.

“I’m happy to hear of the extension until March, but I’m happier if they can consider people’s unhappiness,” said William Chan, Chairman of Taman Desa Residents Association.

He pointed out that the proposed assessment rates are unfair, unrealistic and too onerous. For example, some home owners receive tax rates based on the rental value of their property, even though they are not leasing it.

Chan explained that they are happy to pay the annual tax rate if it was increased by 20 to 30 percent, compared to an exponential climb of 200 to 300 percent as seen in some of the city hall’s recent notices.

OUG Residents Association chairman Wong See Tin said the deferment of the new tax rates is good news for the residents as the complaint period has been stretched from 17 December to March 2014, providing home owners with more time to raise their objections against the new rates.

On the other hand, DBKL Officials explained that the huge tax hike aims to improve the services provided the local authority. This is also the first time that the assessment rates were raised in 21 years.

Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email [email protected]

http://www.propertyguru.com.my/property-news/2013/11/11375/kl-property-tax-hike-deferred

 

[danntbt]

Guess the authorities are now worried that their gungho attitude on raising tax might have repercussion that they did not anticipate....

 

[malpaso]

Low pay has low dignity. Men-in-white said one. Malaysia just follows.

the best part is this is selangor (my home state).. which has fallen to pakatan.. who are supposed to be 'for the rakyat' etc according to anwar.

guess i know what their agenda is now.

 

[cow138]

Yup. On one hand you want people to come to invest yet you want to increase the costs of their investments.
Timing ain't right.
I agree with the article thata slight increase of 20 to 30%is more acceptable. I think people don't mind paying more to geta better living environment such as cleaner streets, better rubbish collection services.
But it has to be done gradually.
This sudden cowboy method of increasing which might be justified considering the last time they did it was 20 years ago just is too fast for people to swallow.
Furthermore with the reduction in subsidies, folks are being squeezed on all fronts.

 

[Funniman]

the best part is this is selangor (my home state).. which has fallen to pakatan.. who are supposed to be 'for the rakyat' etc according to anwar.

guess i know what their agenda is now.

Khalid (Menteri Besar) salary higher than Najib
Hannah Yeoh (State Speaker and she is the State assembly woman from Subang Jaya) salary higher than Muhyddin(Deputy PM)!!

Wow.......we are going to be milked for another 5 years, then they send their MPSA, MPSJ,MPAJ goons to go after hawkers, small factories, coffee shops, houses, etc making sure that they apply for licence and operate legally so that they can collect more taxes. I just received a letter 2 weeks ago from these guys asking me to declare if I employed the waste disposal companies which were nominated by the Selangor Government!!!

 

[edragon]

the best part is this is selangor (my home state).. which has fallen to pakatan.. who are supposed to be 'for the rakyat' etc according to anwar.

guess i know what their agenda is now.

To be fair, in Selangor they are doing something for the rakyat; water supply at and below the CAJ Minima of RM6.00 per month is F.O.C.
Elektrik, the same if at and below the minimum Bayaran Minima Bulanan then Dibayai Oleh Kerajaan pay by the Government.

 

[FHBH12]

Tenaga shares rise on expectations of tariff hike
This follows warning by cabinet minister of a 10-20% rate rise next year
By S Jayasankaran in Kuala Lumpur
Published November 29, 2013

SHARES of Malaysian national power firm Tenaga Nasional climbed over one per cent to RM9.91 apiece after a minister warned Malaysians yesterday to "brace" themselves for a 10-20 per cent hike in electricity tariffs next year.

The Malaysian media quoted Energy, Green Technology and Water Minister Maximus Ongkili yesterday as saying that consumers should be prepared for a 10-20 per cent increase in tariffs next year.

The national power utility has been due for a tariff hike for some time as it has been buying natural gas from a new regasification plant in Malacca at market prices and has yet to receive permission from the government for a pass- through hike.

But with the general elections out of the way, Dr Ongkili's comments were not surprising.

Given the implied presumption, most research houses have had a "buy" call on Tenaga much of the year and, to be sure, Tenaga's share price has climbed 13 per cent since the May 5 general election.

Yesterday, AmResearch joined the swelling chorus. It maintained its "buy" on the stock with a discounted cash flow (DCF)-derived "fair value" of RM10.45 a share.

At that price, Tenaga would trade at 14 times 2014 earnings, which is par for the course,

The bank research unit said that taken literally, the minister's comments would translate to new rates of between 36.85 sen/kWh and 40.2 sen/kWh, from the current 33.5 sen/kWh, which "is above our own estimate of only an 8.5 per cent increase" in tariff rates.

AmResearch notes that this means there could be more upside.

"If the tariff increase is one percentage point above our 8.5 per cent estimate, Tenaga's 2015 forecast earnings will increase by 6 per cent and our DCF value could rise by 13 per cent to RM11.76 a share," the research house said in a report yesterday.

Even so, it is not likely that the government will take any unnecessary political risk.

The new rates are likely to exclude the low-income group while heavy users of electricity - the rich, and commerce and industry - would be the most affected.

Indeed, a week ago, Razak Majid, chief executive of MyPower Corp, a body set up to regulate the power sector, said that it had proposed to the government that tariff rates for heavy industrial users - steel and glovemakers, for instance - be raised by 25 per cent.

Currently, electricity is subsidised at 32.2 sen/kWh, one of the cheapest in the region.

The higher rates could lead to the ultimate test for Malaysian industry: how to remain competitive when the time comes for a complete removal of subsidies and exposure to the free market.

http://www.businesstimes.com.sg/pre...shares-rise-expectations-tariff-hike-20131129

 

[FHBH12]

Living in JB won't be so cheap any more next year.