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Method of tax valuation helps balance MBPJ collection

SHAH ALAM, 21 Aug: The Petaling Jaya City Council (MBPJ) will introduce a tax valuation method to improve the effectiveness of development planning and the budget planning process in the region.

The Mayor, Datin Paduka Alinah Ahmad, said that MBPJ will provide a database covering all spending and tax collection value forecasts through the approved development project.

She said that the effort is being taken because the existing tax is not balanced, where the collection of tax is higher than the quantity of services offered.

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“This shows that either expenditure has increased due to infrastructure that needs to be upgraded, the fixed tax value or has decreased due to the potential of value that has not yet been realised,” she said.

She said that the tax value is the revenue collected from the tax imposed by the Local Authorities on property owners based on Act 171 of the Local Government Act.

She said that the initial studied conducted by MBPJ found that the tax value per acre as of 30 June 2013 for the agency is RM8,524 and the value of tax per unit of holding is RM926.94.

Alinah said that in terms of geographical location, the tax value in SS areas is 28 percent higher that PJU areas, while almost 44 percent of the tax value is derived from the use of commercial land.

“An interesting thing is the tax per unit for service apartments is 35 percent higher than a stratified residential unit.

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“In terms of expenditure per acre for urban basic services, 15 neighbourhoods or 23 percent have provisions over RM100,000 per acre, which is 31 percent higher than the average expenditure for the entire council area.

“The date no longer exclusively reflects the exact scenario, but its accuracy is sufficient to give an indicative picture of the expanses allocated and assigned to MBPJ for each neighbourhood in the ‘back to basics’ services as required by the State Government.

“As such, I am of the opinion that these initial indicative figures show that the council has a huge opportunity to explore a new tax rate that reflects the current scenario fairly,” she said.

NS

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Method of tax valuation helps balance MBPJ collection

SHAH ALAM, 21 Aug: The Petaling Jaya City Council (MBPJ) will introduce a tax valuation method to improve the effectiveness of development planning and the budget planning process in the region.

The Mayor, Datin Paduka Alinah Ahmad, said that MBPJ will provide a database covering all spending and tax collection value forecasts through the approved development project.

She said that the effort is being taken because the existing tax is not balanced, where the collection of tax is higher than the quantity of services offered.

4.1

“This shows that either expenditure has increased due to infrastructure that needs to be upgraded, the fixed tax value or has decreased due to the potential of value that has not yet been realised,” she said.

She said that the tax value is the revenue collected from the tax imposed by the Local Authorities on property owners based on Act 171 of the Local Government Act.

She said that the initial studied conducted by MBPJ found that the tax value per acre as of 30 June 2013 for the agency is RM8,524 and the value of tax per unit of holding is RM926.94.

Alinah said that in terms of geographical location, the tax value in SS areas is 28 percent higher that PJU areas, while almost 44 percent of the tax value is derived from the use of commercial land.

“An interesting thing is the tax per unit for service apartments is 35 percent higher than a stratified residential unit.

4.2

“In terms of expenditure per acre for urban basic services, 15 neighbourhoods or 23 percent have provisions over RM100,000 per acre, which is 31 percent higher than the average expenditure for the entire council area.

“The date no longer exclusively reflects the exact scenario, but its accuracy is sufficient to give an indicative picture of the expanses allocated and assigned to MBPJ for each neighbourhood in the ‘back to basics’ services as required by the State Government.

“As such, I am of the opinion that these initial indicative figures show that the council has a huge opportunity to explore a new tax rate that reflects the current scenario fairly,” she said.

NS

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Your email address will not be published.