GEORGE TOWN, May 9 — Penang will revise penalties for late payments of quit rent and parcel rent solely based on the annual tax, without taking into account the tax arrears and late penalties as practised previously.
In a statement today, the Chief Minister’s Office stated that the new calculation, effective June 1, will only be imposed on land and parcel taxpayers who fail to settle the taxes before May 31 each year as stipulated under the National Land Code.
However, it clarified that the late penalty rate imposed remains the same at 10 per cent for quit rent and five per cent for parcel rent.
“On February 7, the state exco agreed to review the calculation of late fines for quit rent and parcel rent in Penang as it involves imposing fines on fines.
“The revised calculation of late penalties is not retrospective and does not affect individuals who have settled late penalties before the implementation of the revised calculation,” the statement read.
The statement also noted that the state government is committed to implementing appropriate initiatives to encourage landowners in Penang to pay quit rent and parcel rent.
Currently, the calculation of late penalty in the state is 10 per cent for quit rent and five per cent for parcel rent on the total amount of tax due by landowners, including annual tax amounts, tax arrears, and late penalty arrears. — Bernama