The Penang government has recently confirmed the implementation of new land rent (quit rent) rates starting January 1, 2026, involving a total of 373,109 land grants throughout the state including 197,412 first grade lands, which is more than 52% of the total.
Chief Minister Chow Kon Yeow said a review is being carried out by the Land and Mines Office together with the District and Land Offices, after the current tax rates were deemed not to reflect the true value of the land and were causing a "leakage" of state revenue.
Several proposals for new rates have been submitted and are currently being reviewed by the State Executive Council.
However, the final rates have not yet been approved so for now, the people are just asked to wait and be prepared.
The current land tax for first grade land is set based on use, but the state government wants a fairer and more balanced system that takes into account the true market value.
This market value, however, is yet to be clarified, perhaps based on current property prices, or perhaps, coincidentally, the value is equivalent to the price of a Toyota Camry?
It is also very coincidental that the announcement comes after the Penang government had just announced the purchase of 15 new Toyota Camrys worth RM3.3 million for EXCO use.
The new land tax rate is expected to have a direct impact on landowners across Penang.
The question now is, will it ease the burden on the people, or add another burden to bear?
The final decision is expected to be announced by the end of this year, giving the people plenty of time to prepare, and perhaps even… change cars.
