MEDIA STATEMENT
Perak
BN Government to impose new development charge estimated to be between
RM50,000-00 to RM100,000-00 per unit of house or property for any new
development in Perak. Call on Perak Government to have it abolished.
__________________________________________________
The BN Perak
State Government who has only the minority support of Perakians was
hypocritical when it announced recently that it will embark on building
affordable homes for the people.
In fact the BN Perak
State Government had just imposed as from 1st January 2014 a
development charge/tax of between RM50,000-00 to RM100,000-00 on a new house or
property in Perak making it the biggest burden Perakians have to bear in the
increasing environment of price hike making it almost impossible for many
people in Perak to own a house which they can call their home.
The abovesaid
development charge is in addition to the present land conversion premium which
developers have to pay when converting agricultural lands into housing and/or
commercial developments.
The BN Perak
Government has approved under the Town And Planning Act 1976 the Development
Charge State of Perak Rules 2013, which imposes the following new development
charges with effect from 1/1/2014.
1. Change
of Land Use
Development
charge - 25% x
increase in land value
2. Change
in Density
Development
charge -25% x
increase in land value
3.
Change
of Floor, Area
Development
charge -25% x
increase in land value
For example, if
the initial value of a property under the category of agricultural which has
the potential to be developed is worth RM1,000,000-00 and its value increased to RM5,000,000-00 upon conversion
to housing or commercial development, a sum of RM1,000,000-00 will be imposed
as development charge i.e 25% of the increased value of RM4,000,000-00. Only
about 12 units of terrace house can be constructed on an acre of land.
Therefore, the development charge imposed by the BN Perak Government to be
collected by the local government will be about RM83,000-00 per unit. Depending
on the appreciation of the land value upon conversion, the development charge
imposed will be between RM50,000-00 to RM100,000-00 per unit.
In Perak if the
land size is 10 acres or more, developers will be required to build 20% low
cost priced at RM42,000-00 per unit and another 20% medium low cost units price
at RM72,000-00 per unit. It will be impossible for low and medium low costs to
be built in view of the new development charge.
I call on the
Perak Government to abolish the newly imposed development charge immediately.
If the Government govern prudently, there will be more than sufficient funds as
the Government yearly revenue has increased by more than 50% from about RM600
million in 2008 to more than RM900 million in 2013.
More
importantly, the Perak State Government lost about RM2.0 billion when it
approved about 120,000 acres of land since BN’s power grab on 6/2/2009 to
mainly cronies without the more transparent open tender system. BN Perak
Government will not need to increase any form of tax had this additional RM2.0
billion be added to the state’s coffer.
Dated this 11th day of February 2014.
NGEH KOO HAM
MP FOR BERUAS
&
STATE
ASSEMBLYMAN FOR SITIAWAN
