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Mar 19 2009
Heated debate on building tax
Thursday, 19 March 2009

By Azlan Othman
    

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YB Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Hj Awg Adanan, Minister of Home Affairs
  Four Legislative Council members yesterday raised the building tax issue in a heated debate, saying the move was not appropriate in the wake of the global economic crisis and should be discussed with building owners before being introduced.

They also called on the need for the tax to be paid in stages to lessen the burden of building owners and said many unsatisfied building owners who have submitted their queries before the March 21 deadline are still waiting for response from the Municipal Department.

 In addition, tax for entrance road and street lighting should not be imposed as they are inappropriate and are for public use. Facilities like tax on sewerage and rubbish collection should not be made as building owners have their own service.

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Overview of the Legislative Council in session. - PHOTOS: JASON LEONG
In response, YB Pehin Orang Kaya Johan Pahlawan Dato Seri Setia Hj Awg Adanan, Minister of Home Affairs, said the tax rate including the new expansion of BSB Municipality area effective April 1, 2009 has been stipulated in the Municipal Act, Section 12, Chapter 57, which says it does not exceed 15 per cent of the annual cost.

However at the moment, the building tax is up to a maximum of 12 per cent and this depends on the services provided in the area such as road entrance (2 per cent), water services (2 per cent), sewerage (2 per cent) and so on.

If a building owner subscribes to the rubbish collection service, then the one per cent rate to collect rubbish will be exempted in the taxation process. In general, this depends on the facilities provided by the building owner.

As reported in the media, road shows have been held at new areas of BSB and the first phase will concentrate on commercial buildings including rented units. Tax will not be done imposed on accommodation areas, but will be done on commercial areas. Notices have been issued to building owners.

Pehin Dato Hj Adanan also said that the tax has long been imposed in the old BSB area. But in the long-term, the tax system will be reviewed as a conventional method is being used in the old BSB area. We will use the best practice tax system used in other countries. A task force has been set up and we have an expert doing the evaluation, he added.

On the issue of tax payment in stages, the minister said there is an allocation for the tax to be paid twice a year. On the issue of building owners yet to receive feedbacks from the Municipal Department, the minister said the matter would be looked into.

Courtesy of Borneo Bulletin - March 18, 2009
Last Updated ( Thursday, 19 March 2009 )
 



 

 

 

 

 

 

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