Residents and property owners in Kuala Lumpur are expected to face an assessment tax increase starting next year, with the property industry being the initial focus.
The move is aimed at helping Kuala Lumpur City Hall (DBKL) overcome its financial deficit and cover the rising costs of road repairs, waste management and public housing maintenance.
Minister in the Prime Minister's Department (Federal Territories), Dr. Zaliha Mustafa, confirmed that discussions on the increase had begun since July.
According to her, a study is underway to ensure a phased implementation to reduce the burden on the people, as the assessment tax rate was last revised in 2013.
In Selangor, assessment tax will be increased by 25% starting 2025, indicating a comprehensive effort to update property valuations that have not changed for a long time.
However, the details of the increase for Kuala Lumpur are still being studied but this plan is expected to be inevitable given the urgent need to increase revenue.
Although this move is expected to help DBKL increase its revenue, it has raised concerns among the people who are already burdened by the rising cost of living.
Is this a wise move to save the city's finances, or will it just add to the pressure on already burdened citizens?
