BY GRACE CHEN

THOUGH Putrajaya Corporation (PPj) has not given a definite answer on possible reductions or discounts for the 2017 assessment bill hike, it has asked property owners, both residential and commercial, to submit their appeals.

“If owners are renting out their shoplots below what is stated in the value in our assessment bill, bring us the tenancy agreement or a second opinion from a certified and registered valuer. We will do the adjustment,” said PPj Finance Department vice-president Nik Shukri Nik Soh.

During the objection hearings, owners were told to bring their tenancy agreements but no one has done this so far.

Nik Shukri explained the method used to come up with the new valuation list was based on the property’s annual value and said this figure could be used by the industry to determine monthly rental rates that were more in accordance with the times.

He also said when the registered valuer commissioned by PPj came back with figures for the new valuation list, PPj had reduced them by 20% in consideration of the people’s interest.

He said owners of residential properties should not be unduly worried for now as a tax cap was imposed for this category.

Though he was unable to say for how long the cap will last, he said there were no plans to lift the cap anytime soon.

Nik Shukri said since 1999 when PPj first started collecting assessment fees, it has reviewed and lowered its rates three times.

Assessment rates for affordable housing units for example, started off at 8% but was lowered to 5.5% and later 5%.

The band for this category of property was also raised to include units priced between RM100,000 and RM150,000.

PPj has received some 2,000 objections against the hike, of which 1,671 were from one big corporation. The rest were from individuals, residents associations and companies.

However, the federal administrative body will not budge over the amount billed for vacant land despite grumblings from owners who have reported increases of as high as 192%.

Earlier, Precinct 10 Residents Association president Datuk Sirajuddin Salleh said it did not make sense for empty land to cost more in assessment than one that had been developed.

He demanded to know what owners were paying for because even when it came to cutting grass growing on their land, owners were being billed for it.

The local authority said it had the right to impose higher assessment taxes for this category of property as idle lands were not encouraged.

It cited public health as a major reason as idle land usually ended up being breeding grounds for mosquitoes, snakes and monitor lizards that could endanger residents in the area.

“In fact, under the National Land Code, the local authority has the right to seize the land from the owner, but so far, we have not done this,” said Nik Shukri.

Last year, PPj collected RM30mil in assessment fees, contributing to 15% of a RM245mil maintenance bill needed to run the federal territory.

A total of 9,571 assessment bills were issued this year.

Though some of the cushioning measures offered by PPj may offer a chance of relief to owners renting out their property, owners like tailor Nor Fadhilah Zulkarnain, who runs her business at her property, will be at a disadvantage.

Her assessment bill may have only increased by 7% but she says small businesses like hers will find it hard to cope.

The baju kurung tailor, whose boutique is located on the first floor of a row of shophouses in Precint 9, bought the unit with her mother’s savings.

“As it is, we need to make RM6,000 a month to pay staff salaries, maintenance fees and service the bank loan.

“But our customers are not from the higher-income bracket.

“We can only charge them a maximum of RM75 for workmanship for every piece of garment.

“So you can imagine how we are already struggling to cover expenses, before the assessment bill hike,” said Rosidah Abdul Hamdah, Nor Fadhilah’s mother.

Precinct 9 Neighbourhood Commercial Centre 1 (NCC1) Joint Management Body chairman Aisha Mubarak said the assessment hike would be fair if PPj was prepared to take over maintenance of the area’s inner roads and drains as they were heavily used by the public.

For now, they are maintained by NCC1. PPj is only handling rubbish disposal.

Yogeswaran Valane, a general manager in the finance department of a food and beverage services company, said the hike could not have come at a worse time as sales had dropped by as much as 30% in the past two years.

“We understand there is no avoiding an increase in the face of property value appreciation but this is too sudden.

“The authorities should have cushioned the impact with gradual increases, perhaps every two years,” said Yogeswaran.

All appeals from property owners will be discussed at a committee meeting this month.

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