The Cukai Pintu or Assessment Rate issue has been getting a lot of attention, as well as a fair bit of misinformation.

We are here to explain the Assessment Rate/Cukai Pintu issue by going back to basics.

If you have any questions concerning the Cukai Pintu/ Assessment Rate issue, please feel free to ask us.

For an as-yet incomplete list, you can go to mykl.com.my and see DBKL's function there.

We are an online team set up to clarify this issue. Our Twitter handle is @MyKLTalks and our FB is fb.com/mykltalks . The website is www [dot] mykl [dot] com [dot] my

He has a few points which are correct and the formula seems legit.

However, if you have a specific question, you may ask us or go to mykl.com.my/en/faq.html

This post has been edited by MyKLTalks: Jan 6 2014, 10:23 PM

Thanks for asking!

Before I answer these questions, let's get a few things straight so we are all on the same page.

To say the Cukai Pintu is increased is not entirely true. The Annual Value is increased and the Assessment Rate Percentage is decreased.

The formula for amount of Cukai Pintu or Assessment Rate paid is this: Cukai Pintu or Assesment Rate = Annual Value or Nilai Tahunan X Assessment Rate Percentage.

One factor goes up and another one goes down. Some owners will pay less and some will pay more, depending on how much the increase of their Annual Value as compared to the decrease in Assessment Rate Percentage.

Now, on to your questions:

1. There are two components to your question. First is the last time there was an Annual Value revision was in 1992. All this while, all these properties were charged the Assessment Rate based on that old value. Since then, the value of these properties have increased. So when there is a revision, 21 years later on any property, of course the value goes up. The second component is the increasing cost to cover the increasing operating expenditure and development expenditure. Yes, cost has increased and even with more property units paying Assessment Rate, it is not enough to cover the shortfall.

2. More people staying in KL whether in high-rise property or landed ones means more strain on the upkeep and maintenance of facilities and amenities. For example, roads - City Hall spent a lot just to maintain roads. If more people use them, then the maintenance cost would also soar.

3. Yes, as outlined in the Annual Budget Speech by the Mayor, there are many plans with the funds to improve and upgrade existing facilities and amenities with the aim to make and maintain KL as a world class city.

Any other questions, please ask us or engage us on Twitter (@mykltalks), FB: fb.com/mykltalks and our website: mykl.com.my

This post has been edited by MyKLTalks: Jan 6 2014, 04:47 PM

Apologies. Here is the full link: http://mykl.com.my/en/faq.html

We will bring you more information as soon as possible on the expenditure. However, should you want to know more, you can download the DBKL Mayor's budget speech here: http://www.dbkl.gov.my/index.php?option=co...id=1231&lang=ms

If you have any complaints concerning roads maintenance, you can contact DBKL at:

DEWAN BANDARAYA KUALA LUMPUR
Menara DBKL 1, Jalan Raja Laut, 50350 Kuala Lumpur, Malaysia

Talian Am: +603 2617 9000
Call Centre: 1 800 88 3255
Faks: +603 26980460
E-mel: dbkl@dbkl.gov.my

As for the third part of your question, yes, you can request for these performances and send a letter of suggestion to DBKL at the aforementioned address.

Road maintenance is just an example. Each KL resident throws half a ton or 500kg of garbage a year. City Hall spent almost RM200 million in 2013 to clear garbage alone.

More people also means they will use public parks, hawker centers, sports halls, courts, etc.

The sheer number of people will increase the operating cost for everything City Hall does to maintain the city.

1. The increase is for the Annual Value. The Annual Value is based on the total annual rental rate. The rent in 1992 is lower than 2013, therefore the Annual Value revision is reflecting the current market rental rates for the properties. This Annual Value is one of the factors which determine Cukai Pintu paid. For the future projection of Income Vs Expenditure for City Hall to maintain KL, please go to http://mykl.com.my/en/why.html

2. If you have anything you wish to complain about DBKL operations, please contact them:

DEWAN BANDARAYA KUALA LUMPUR
Menara DBKL 1, Jalan Raja Laut, 50350 Kuala Lumpur, Malaysia

Talian Am: +603 2617 9000
Call Centre: 1 800 88 3255
Faks: +603 26980460
E-mel: dbkl@dbkl.gov.my

3. Yes, KL as a world class city is achievable. Some would pay more or some would pay less this year for Assessment Rate. Here are two real world examples:

A. A medium-cost apartment in Kepong.

Old Annual Value: RM9,000
Old Assessment Rate Percentage (Residential): 6%
Old Assessment Rate paid: RM540

New Annual Value: RM12,000
New Assessment Rate Percentage (Residential): 4%
New Assessment Rate paid: RM480

So this is a decrease of RM60.

B. Vacant Land - Commercial in Bukit Bintang

Old Annual Value: RM2,226,500
Old Assessment Rate Percentage (Vacant Lot - Commercial): 10%
Old Assessment Rate paid: RM222,650

New Annual Value: RM7,634,000
New Assessment Rate Percentage (Vacant Lot - Commercial): 7%
New Assessment Rate paid: RM534,380

Increase of RM311,730

For the case studies, please go to: http://mykl.com.my/en/how.html

Actually, DBKL maintains 2,010km of roads in KL and they constantly build new ones.

The roads you are referring to are expressways and highways. Tolls, highways and expressways are another matter, handled by other entities.

The sheer amount of garbage is staggering. 912,500 metric tonnes of garbage a year. Plus costs for landfills, etc. Regardless of which company DBKL engages, the cost would remain the same to move literally mountains of rubbish.

What we can do is lessen the burden of the city by not throwing too much garbage. Perhaps a reduce, reuse, recycle mentality could help?

If you have any feedback concerning DBKL operations, or any suggestions concerning how they operate, please contact them:

DEWAN BANDARAYA KUALA LUMPUR
Menara DBKL 1, Jalan Raja Laut, 50350 Kuala Lumpur, Malaysia

Talian Am: +603 2617 9000
Call Centre: 1 800 88 3255
Faks: +603 26980460
E-mel: dbkl@dbkl.gov.my

Actually, your property is perhaps outside a 36-mile radius from the city center. This is why your previous Assessment rate percentage was 10 %.

The good news is - yes, for Commercial properties outside the 36-mile radius from the city center, the New Assessment rate Percentage is 8%.

The Proposed Annual Value under the revision is now up for appeal with DBKL. Have you submitted an objection by Dec 17 2013? DBKL received 153,000 objection letters by the deadline.

http://www.nst.com.my/latest/public-hearin...t-hike-1.456296

Here is the latest news coverage on the public hearings for the Annual Value Revision by DBKL

There is also a special incentive for OKUs/The disabled, retirees and owner-occupied properties.

You can apply for an even further reduction to the Assessment Rate. The forms are available at DBKL Payment Counters

In your case, as an owner who stays at his/her own property, you can apply for a special incentive - a further reduction in Assessment Rate amount you have to pay.

To apply, you can get the form from a DBKL Payment Counter.

Under the law (Local Government Act 1976, if I'm not mistaken), DBKL can revise the Annual Value every five years and charge a maximum of 35% across the board.

Should the value of properties change in the future - for example a drop in property prices and/or rental rates - then City Hall can do another Annual Value Revision.

If you have any evidence to back your claims, you can either report to DBKL using the information we supplied above or send it over to projectmykl@gmail.com for us to forward to our clients.

There is also the MACC and PDRM.

For operations conducted by DBKL, if you find any unsatisfactory performance or negligence, you can either report to DBKL, or get one of the media outlets (either mainstream or alternative) to highlight it.

Apologies, but the scope of this campaign does not cover MACC or PDRM. However, the usual protocol is for parties (individuals, groups, companies or any entities) to submit a report to the authorities.

If you - as a concerned citizen - feels the matter warrants the attention of the authorities, it is prudent to lodge a report as soon as it is convenient for you.

This is a step-by-step page from the MACC:

http://www.sprm.gov.my/laporkan-rasuah.html

And this is the PDRM directory for phone numbers and emails to all divisions:

http://www.rmp.gov.my/db2.cfm?path=contact...=20&con=0&dis=1


From DBKL's perspective, any and all reasonable reports or objections are heard, as with the case of the 153,000 objections to the proposed Annual Value Revision.

DBKL is currently holding a special public hearing for all 153,000 cases of objections filed to them. This process may take three months.

The valuation process is a popular question. Here is how it was done:

The valuation started in January 2013 by the JPPH. A group of Valuation Officers did the assessment based on built-up area or lot area. Aside from that, the department conducted the research using these sources:

'rental survey';
Classified ads in newspapers and online;
Property market reports;
Owner’s Return form;
Sales transactions;
Tenancy agreements.

The department also consulted the Ministry of Finance's own JABATAN PENILAIAN DAN PERKHIDMATAN HARTA to get values of certain properties.

On Nov 18 2013, owners would have received a notice alerting them of the proposed new annual value of their property.

The owners then have the chance to challenge or object to the new proposed value according to the revision.

A total 153,000 objection letters were ultimately received by DBKL and these 153,000 objections are now undergoing a public hearing process with DBKL.

You can read all this here:

http://www.mykl.com.my/en/how.html under Annual Value Revision 2014 button


For FAQs, you can go here:

http://www.mykl.com.my/en/faq.html

This post has been edited by MyKLTalks: Jan 6 2014, 10:47 PM

No, it is not true. There is no race discrimination when DBKL was conducting the Annual Value Revision. Should you believe any form of unfair discrimination has been committed, please report to DBKL using the information we have provided above.

I believe the special incentive is for residential properties. Factories are not residential units.

The Annual Value rental formula is simple.

Annual Value = Monthly Rental Value X 12.

If the rent is RM1,000 per month, the annual value is RM12,000.

If the rent is RM1 million per month, the annual value is RM12 million.