Kuala Lumpur City Hall (DBKL) recently announced a surprising move to increase the property valuation tax cap after more than ten years of applying the tax.
This move is expected to provide an additional RM80 million annually to the city fund.
The plan is still awaiting approval from the Federal Government with DBKL planning to phase out the tax cap introduced in 2014.
The tax cap limits the increase to 10% for residential properties and 25% for commercial premises.
Kuala Lumpur Mayor Datuk Seri Maimunah Mohd Sharif explained that this adjustment will not involve new property valuations, but will instead align taxes with current market values to improve city services more efficiently.
The change will be implemented in phases to avoid placing too much financial burden on property owners.
With the last valuation being carried out in 2013, Maimunah also stated that new property valuations may be implemented after 2026, after the full removal of the tax cap.
This decision was made following a decline in DBKL's revenue, which is seeking to strengthen its financial position.
