Answer to Oral Question PL112
📖 Reading time: 2 minutes
📊 Word count: 344 words
YANG BERHORMAT AWANG HAJI DAUD BIN JIHAN​
QUESTION:
Yang Berhormat Awang Haji Daud bin Jihan asks the Minister of Development to state the justification for the higher land tax rates in urban areas compared to rural areas, despite services such as garbage collection, drain cleaning, and infrastructure maintenance in urban areas not showing significant differences. Does the government plan to reassess the tax rates or enhance services to ensure commensurate benefits?
YANG BERHORMAT MENTERI PEMBANGUNAN​
ANSWER:
Thank you, Yang Berhormat Yang Di-Pertua. Thank you to Yang Berhormat Awang Haji Daud bin Jihan for the question regarding the current enforced land tax rates.
Land Tax is imposed under the provisions of the Land Code (Chapter 40). This tax is an annual payment required to be settled by every registered landowner. The collection of Land Tax falls under the jurisdiction of the Land Department.
The land tax rates are determined based on the type of land use (special conditions), size, and location. For example, land with general residential conditions within urban areas is taxed at a higher rate compared to rural areas. This is because land located in urban areas has a higher market value compared to land located outside urban areas. Hence, the price value of such land is higher compared to land of the same size located outside urban areas.
For instance, land with general residential conditions measuring 0.25 acres in Jalan Kumbang Pasang is taxed BND 50 per year. While land with the same conditions and size in Kampung Junjongan is taxed BND 10 per year.
This tax is imposed on the land, whether there is construction on it or not.
The land tax is not related to any services provided by the authorities within urban areas.
Building Tax imposed under the Municipal Boards Act (Chapter 57) does not fall under the authority of the Land Department or the Ministry of Development. Sections 36 and 4.1 under this Act assign the Municipal Board with the responsibility, among others, to regulate services such as garbage collection, drain cleaning, and maintenance of certain infrastructure. Therefore, these services are not related to Land Tax.
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