The Sun (Malaysia)

Promise to lower property taxes

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for 90 types of business licences. The fee for a new business licence in Selangor has increased by as much as 300%.

Business licence fees under the Shah Alam City Council were raised by as much as 72%, and under the Petaling Jaya City Council by as much as 120%. Klang Municipal Council and Ampang Jaya Municipal Council have also raised their business licence fees.

A case in point, the new licence fee for a used car dealership under Pakatan’s Kajang Municipal Council was increased by 282%, from RM390 during Barisan Nasional’s time to RM1,490 after Pakatan took over.

The Pakatan local government­s have also charged fees on 32 types of business premises which previously were exempted under the Barisan Nasional government. They have also increased assessment rates on old folk’s homes, homes for the disabled and nurseries.

Penang Real Estate and Housing Developers’ Associatio­n chairman Datuk Toh Chin Leong said that the cost of doing business has gone up because of the increase in compliance costs imposed by the state government.

Small and petty traders also feel the brunt of escalating compliance costs as the local government­s in Selangor and Penang increased business fees.

According to a Penang state representa­tive Datuk Muhammad Farid Saad, contributi­on fees for each stall at some places in Penang were increased from about RM3,000 a stall before 2008 to about RM35,000 to RM58,000 a stall now.

When traders pay high rents for their business premises, the traders will transfer the cost to the consumers in terms of higher prices of goods and services.

This is why the price of a bottle of mineral water is cheaper at sidewalk stalls than in grocery stores or supermarke­ts.

According to Price Catcher under the Ministry of Domestic Trade, Co-Operatives and Consumeris­m, there are price difference­s among the states too. For example, a kilogram of onion on average sells for RM4.70 in Selangor whereas in other states including Kuala Lumpur the average price is RM4.15.

Basic amenities were also not spared. Parking contributi­ons in some areas in Penang, which were previously at RM15,000 a bay before 2008, were increased to RM25,000 a bay. Since Pakatan took over Selangor and Penang, business growth has been sluggish.

Mentri Besar Datuk Seri Azmin Ali blamed the “slow economy” for the reduction in forecast revenue from land premiums, quit rent and land-related business charges. What he doesn’t understand is that his policy of raising property taxes is the main cause of the slow economy in Selangor in the first place.

The Pakatan government’s policy has increased the cost of doing business and the cost of living in Selangor; this in turn causes the slow economy.

In recent years, the Selangor state government has increased the salary for the mentri besar and the Pakatan state executive committee members. The Selangor mentri besar’s salary is the highest among public servants in the country, higher than the salary of the prime minister.

Effectivel­y, Pakatan politician­s have increased the tax burden on the people and raised their own salaries.

Selangor has many problems. It has the highest number of water supply disruption­s in Malaysia compared to all other states combined, the highest number of deaths caused by communicab­le diseases like dengue, the highest number of vice premises, and so on.

And now to add to the list, one of the highest cost of living in the country. And the rates above are not just because there are many people living in Selangor, they are the highest even on a per resident basis.

Benjamin Franklin once said, “In this world nothing is certain except death and taxes”. But Pakatan’s Selangor government has gone overboard with this as evident by the above.

This is a real and urgent problem. We need to fix it. I am a Selangorea­n. This is my state. I want to make it better.

When Barisan Nasional wins Selangor in the coming general election, we will lower property-related taxes in Selangor for cheaper house prices and lower cost of doing business, lower prices of goods and services, hence overall lower cost of living and a better life in Selangor for all.

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