The Penang state authorities has introduced a rise within the stop lease rebate charge for 2026 to 50%, up from the beforehand introduced 32.5%. The transfer is meant to ease the monetary burden on landowners whereas permitting the transition to the revised stop lease charges to be carried out in a extra gradual and managed method.
Chief Minister Chow Kon Yeow stated the revised rebate was an extra measure to stability the pursuits of landowners with the state’s income wants. He defined that the brand new stop lease charges will stay in pressure for a minimal interval of 10 years, in accordance with provisions below the Nationwide Land Code. The rebate is topic to a minimal stop lease charge, and if the payable quantity after the rebate is decrease than the stop lease paid within the earlier 12 months, the prevailing quantity will proceed to use.
Chow made the announcement to reporters at Komtar on December 23, 2025. He stated the choice to extend the rebate charge was permitted on the State Govt Council assembly on December 10. A subsequent council assembly on December 17 agreed that appeals for reductions in stop lease, excellent stop lease, and late fee penalties could also be thought of by means of the Land Workplace for particular instances.
Examples embrace land replanted with rubber, oil palm, coconut, or fruit timber below schemes that ended throughout the previous six years, land used for public functions, and landowners going through hardship comparable to poverty, incapacity, or lack of earnings resulting from disasters or different affordable circumstances. Consideration may additionally be given to “First Grade” landowners affected by modifications in charges based mostly on present land use, in addition to these concerned within the reclassification of land from rural to city standing. All appeals are topic to established situations.
In a associated transfer, the state authorities will grant a 100% exemption on penalties for excellent stop lease and parcel lease from January 1 to December 31, 2026, involving penalties totalling RM25 million. The initiative goals to encourage land and parcel house owners to settle any gathered arrears.
Stop lease payments reflecting the brand new charges will probably be mailed in mid-January 2026, whereas on-line checking and fee will probably be obtainable from January 2, 2026. The revised charges, gazetted on September 11, 2025, will take impact on January 1, 2026, affecting practically 370,000 land titles throughout the state.
