Selangor to Raise Assessment Tax Rates Starting January
The Selangor government has announced a 25% increase in assessment tax rates for local authorities, effective January 1, 2025. The decision, guided by the Local Government Act 1976 (Act 171), aims to align tax rates with updated valuation lists, which are legally required every five years.
Why the Increase?
The adjustment comes after decades of stagnant rates in many areas:
- The Sabak Bernam District Council has been using the same rate for 38 years.
- The Kuala Langat Municipal Council has retained its rate for 37 years.
- Nine other local councils last updated their rates over 20 years ago.
According to Datuk Ng Suee Lim, chairman of Selangor’s Local Government and Tourism Committee, the revision will generate RM355 million annually, which will be invested in improving:
- Public infrastructure
- Flood mitigation systems
- Essential services
Exemptions for Low-Cost Housing and Traditional Villages
Despite the rate increase, the state government will provide targeted exemptions to ensure affordability for vulnerable groups:
- Low-Cost Housing:
- Includes SelangorKu homes.
- Financial impact: RM60 million in exemptions for 2025.
- Traditional Village Homes:
- 2,849 properties already exempted this year.
- Goal: Extend exemptions to 5,000 homes based on qualifying criteria.
Addressing Cleanliness and Flooding in Klang
The state government is also prioritizing issues raised by Sultan Sharafuddin Idris Shah, who expressed disappointment over cleanliness in Klang, particularly its role in exacerbating flooding.
Efforts include:
- Flood Mitigation: Reviewed during the Selangor Economic Action Council meeting.
- River Cleanliness Initiatives: Plans for immediate action to improve the condition of Klang’s rivers.
What Does This Mean for Selangor Residents?
The revised tax rate is expected to fund substantial upgrades in urban infrastructure and municipal services, benefiting districts across the state. While the hike may initially strain budgets for some property owners, the exemptions for low-cost housing and traditional villages aim to cushion the impact for vulnerable groups.
By addressing longstanding issues like flooding and cleanliness, the Selangor government demonstrates its commitment to sustainable urban growth and better living conditions for its residents.
