Consumer group urges Alor Star to defer assessment tax hike

ALOR STAR: The Consumers Association of Kedah (Cake) has urged the Alor Star City Council (MBAS) to defer its planned review of assessment tax rates in the city, citing an excessive increase that could burden homeowners and tenants alike.

Cake president Yusrizal Yusoff said based on notices issued by MBAS, many residents had reported steep hikes in their property valuation assessments, which translated into massive tax increases.

He said the association had received numerous complaints from residents since the notices were distributed, with many struggling to understand how to file objections.

“We understand the council has the right to conduct a review after more than three decades, but this revision is too abrupt and risks overburdening the public,” he said at a press conference after handing a protest memorandum to MBAS mayor Datuk Abdul Gafar Yahya at the mayor’s office.

Yusrizal said Cake does not completely oppose the reassessment but urged MBAS to either defer or implement the new valuation gradually.

“If the last review was in 1993, a reasonable and phased increase would make sense. But doubling or tripling the rates at once is unacceptable,” he said.

He said the new valuation had far-reaching implications, especially for homeowners, tenants, and small business operators.

“Shelter is a basic human need. Now, even young people are finding it difficult to own homes. Once they do, they’re hit with higher taxes,” he said.

Yusrizal said property owners renting out their homes would likely raise rental rates to offset the new costs, further burdening tenants already struggling with high living expenses such as utilities, food, and transportation.

The association also highlighted confusion among residents regarding the objection process, saying many did not understand whether they needed to hire valuers or submit fresh documents.

“MBAS should send officers to the ground, meet residents and community leaders, rather than rely solely on QR codes and online forms,” he said.

On claims that assessment rates had increased by up to 200 to 300 per cent, Yusrizal said such figures appeared to apply mainly to commercial premises.

“From the information we gathered, residential assessments have roughly doubled. For example, a house that previously paid RM500 may now face RM1,000 in assessment tax. However, for business premises like factories, warehouses, hotels, and supermarkets, the increase can reach as high as 245 per cent.”

He warned that such hikes could have knock-on effects on consumer prices, as businesses might pass on the higher operational costs to customers.

“When land and property costs go up, it triggers a chain reaction. Prices of goods and services could rise next, worsening the cost-of-living pressures,” he added.

Earlier today, Gafar defended the proposed review of the city’s assessment tax as the move will ultimately benefit residents through improved services and infrastructure.

He said the review, expected to increase annual tax collection from about RM36 million to RM50 million, would allow the council to channel more funds towards addressing long-standing urban issues such as flash floods, drainage maintenance and road repairs.

The move, however, has drawn criticism from business groups, residents and former menteri besar Datuk Seri Ahmad Bashah Md Hanipah, who is Alor Star Umno division chief.

Residents have until Nov 5 to submit their objections, either online or in person at counters set up by the city council.

© New Straits Times Press (M) Bhd

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