GEORGE TOWN, Sept 22 — Penang backbencher Datuk Seri Reezal Merican Naina Merican has called on the state to ensure that traditional villages are not gazetted as urban areas under the state’s review of quit rent rates.
The Bertam assemblyman said the review of the boundaries of newly gazetted urban areas should ensure that rural and traditional villages are excluded.
He said the review should take into account existing infrastructure and the socio-economic status of residents.
“The new rates should be adjusted based on the actual development status of the land, not based solely on its gazettement as an urban area,” he said in a statement today.
He referred to the state government’s decision to expand its urban boundaries by gazetting more land as urban areas and reviewing quit rent rates after more than 30 years without revision.
Reezal said the review is understandable as a way for the state to increase revenue.
However, he expressed concern over the implications of the measure, particularly on residents of traditional villages and rural areas classified as urban.
“As a result, they are subjected to urban-category quit rent rates which are much higher, with some increasing by more than 100 per cent,” he said.
He said the quit rent rate for village residential lots, previously RM0.22 per square metre, will now be taxed as urban residential lots at RM0.70 per square metre.
“This is a real burden, especially for landowners with low incomes and senior citizens who have inherited family land for generations,” he said.
He called on the state to provide targeted and tiered rebates for those living on traditional village lands and members of the B40 group.
He also urged the state to hold more dialogue and engagement sessions with representatives from traditional villages and residents’ associations before fully enforcing the new quit rent rates.
“Simulations of the payable rates should be provided so that the people can check in advance,” he said.