When we pay to a vendor, we expect good services. When we pay taxes? We expect the local authorities to serve us well. If we have been paying low taxes for a very long time, we should not expect ever better services every year. The question will always be what should an appropriate tax level be? Will it burden us? For example, the recent brouhaha about Penang’s new assessment rates? 15 years no increase, now it increases
How long before it should be reviewed, whether upwards or downwards? Think about it, when population grows, the local authorities will have to do more. Even the rubbish collection will mean many times higher than those days when there were very few people staying in the neighbourhood. However, it’s also true that with a growing population, the amount of taxes collected may also increase too.
Article in edgeprop.my Housing and Local Government Minister Zuraida Kamaruddin has asked all 155 local authorities (PBT) nationwide to review the taxes beginning 2020. This is a requirement every 5 years under the Local Government Act 1976. She said that it was necessary to ensure a uniformed tax collection across the board as some of the PBTs have not reviewed its taxes for 20 years. She said that she wanted the PBT to ensure the increment will not burden the people but this increment is needed because of the increase of services offered by the PBT along with population growth. Article in edgeprop.my
20 years of zero increments showed that the PBTs did not do their planning job well or they cared too much in not over-burdening the population or they have been able to perform their services without the need for higher taxes? Well, just needed to wait for the announcements when it happens. What’s certain is that the change is likely to be upwards yeah. I will be happy to anticipate better services with higher rates that I have to pay.
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