No need to scrap, restructure quit rent and assessment

From Zakay Rehman, via e-mail

Scrapping a much needed form of government revenue is simply out of the question, even though tax abolishment sounds politically attractive. What the state and their appointed local government should do seriously, is look into the inequities of the current real estate based tax system.

The current real estate based tax system seems to be disproportionately disfavouring strata buildings or apartment owners. The basis of using market value and parcel size to calculate tax does not take into consideration the value or services provided in return by the government; the axiom of tax being quid pro quo.

This can be redressed and should be redressed. Note that for the states of Penang and Selangor, strata living are the common folk's way of living, and demographically the trend will expend rather than reverse, which will benefit the 'politically savvy government that sees this opportunity.

My argument is in plain sight, for example, a five-acre piece of land that has 1,000 units of medium cost apartments will be charged millions of ringgit more in quit rent and assessment, compared to a similar sized land that may accommodate 100 units of terraced houses.

Question is, what more does the state or local government do to the benefit of apartment dwellers that justify the sometimes 10 X (10-fold) revenue collection?

In fact, strata apartment dwellers maintain the upkeep of their common area separately at their own expenses..., and before we insult each other intelligence, the argument of paying for public amenities like road, schools, etc, does not commensurate with the overwhelming revenue collection, that is why I use the term 'value of services' to be provided.

How the state and local government redresses the inequities is worth a forum; on my part, I suggest that there is no need to cut the taxes but to channel back a percentage of the taxes into the local governments COB (Commissioner of Building) maintained fund that the apartme! nt owner s, through their JMB (Joint Management Body) can draw from to subsidise their maintenance cost or refurbishment cost.

That way, there will be direct impact to the pockets and quality of living for the strata apartment dwellers which will only augur well for the politicians.

The working class are the biggest voter pool, and in urban and suburban areas, strata dwelling is their abode of choice, so they who can make strata living more bearable and comfortable will surely reap the benefits of support.

Ball's in your court gentlemen and ladies.

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