The Penang authorities has formally gazetted revised give up lease tax charges for the whole state, marking the primary adjustment in additional than three many years. The brand new charges, printed within the Penang Authorities Gazette No. 37 on September 11, will come into impact on January 1, 2026.
Chief Minister Chow Kon Yeow mentioned the revision, accredited by the Nationwide Land Council in 2024, will apply to just about 370,000 land titles throughout Penang. The charges will stay unchanged for a minimum of 10 years, with the following overview scheduled solely after the present time period.
“The final overview was performed in 1994. The state skipped two cycles in 2004 and 2014, which delayed changes for 30 years. This lengthy hole has restricted income development and made it tougher to deal with arrears and leakages in assortment,” Chow defined at a press convention in Komtar.
The revision won’t have an effect on the state’s 300,000 strata parcel accounts, the place homeowners will proceed paying their present parcel-based charges. As an alternative, the adjustment is aimed primarily at industrial and industrial land, which has seen important returns for landowners over time.
“For residential and agricultural land, the rise will probably be modest. For instance, the minimal price for residential land in city areas will solely rise from RM40 to RM50,” Chow famous.
Rebate and Incentive Measures
To cushion the monetary influence, the state will introduce a rebate scheme starting in 2026. Landowners will obtain a 32.5% rebate in 2026, adopted by 20% rebates in each 2027 and 2028. Chow clarified that landowners should proceed paying their 2025 price if the post-rebate quantity falls under the prevailing cost.
The rebate programme is predicted to cut back state income by RM80 million to RM100 million yearly through the three-year interval.
As well as, a number of incentives will probably be rolled out in 2026:
- Penalty waiver: Full exemption of penalty prices on give up lease and strata parcel arrears for funds made between January 1 and December 31, 2026, valued at about RM25 million.
- Conversion low cost: A 50% discount in land conversion premiums for agricultural tons transformed to residential use, relevant to particular person housing and topic to planning tips. This goals to help landowners in areas the place farming has ceased.
- Digital fee rewards: Enticing prizes and fortunate attracts for many who pay give up lease and strata parcel taxes via the PG Land cell utility, to encourage on-line transactions.
Chow mentioned these measures are designed to stability the necessity for income with monetary aid for landowners.
“With the revised charges, Penang expects a stronger income base, which can allow us to offer extra focused monetary help and long-term cost-of-living help for the folks,” he mentioned.
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