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THE Penang Ratepayers Association has followed in the footsteps of former chief minister Lim Guan Eng, urging the state to review the hike in quit rent rates, as the new structure burdens landowners in the age of rising living costs.
Association president Lee Kim Noor said that the ratepayers appreciated the gesture of Chief Minister Chow Kon Yeow in allowing appeals by individuals who are dissatisfied with the recent quit rent increase.
However, as quit rent is a statutory charge prescribed by law, it must be administered strictly within the legal framework and not on a discretionary basis.
The imposition of quit rent must therefore be transparent, fair, and reasonable, said Lim in a statement.
The association prefers that the state government adopt the guidelines under the National Land Code, as the move to hike quit rent by allegedly up to 200 per cent has unsettled many landowners and ratepayers here.
The association said under Section 52 of the code, land use categories are limited to the three classifications of agriculture, building and industry.
“However, the revised Penang quit rent structure subdivides these categories into several sub-classifications, including residential, commercial and multiple agricultural crop types such as rubber estates, palm oil estates, fruits, industrial crops, cash crops, durian plantations and others.
“The classification of buildings into residential and commercial categories creates uncertainty, particularly in areas such as George Town, where at times residential buildings are used for commercial purposes while owners continue to occupy them.”
The association also said the creation of multiple agricultural categories results in unequal treatment, with durian plantations being charged RM800 per hectare, while other fruit crops are charged RM80 per hectare.
“This seems arbitrary, as there appears to be no transparent scientific or economic basis demonstrating the differing returns per hectare,” said Lee.
It suggested that residential and commercial classifications be merged under the “building” category at a uniform rate, and that all agricultural and farming activities be subject to a standard rate to encourage food security and agricultural sustainability.
“The rate structure should align with the categories prescribed under the National Land Code,” it said.
Penang is implementing a major quit rent increase (land tax) starting January 1, 2026, with hikes between 29 per cent and 200 per cent across various land categories, stating that the last assessment was done over three decades ago.
The hike in quit rent was also necessitated, as the state seeks more revenue to compensate for the huge investments the state is undertaking for an upgrade in infrastructure, from new bypass highway roads to new social amenities.
There are rebates of up to 50 per cent offered, and over 370,000 landowners in Penang are affected by the revision of quit rent rates.
Landowners are allowed to appeal, especially for First Grade land.
The new rates follow the gazetting of 10 expanded and 25 new townships. - February 19, 2026.
