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Financial Cukai Pintu Explained, Cukai Pintu/Assessment Rate issue in KL

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kochin
post Jan 6 2014, 04:11 PM

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QUOTE(MyKLTalks @ Jan 6 2014, 03:49 PM)
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.
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it will be more credible if you can shed some light on your background.

nevertheless, i'll play along.

do enlighten us on whether the blogger have stated accurately and correctly on matters pertaining to KL assessment rates.

1st post:
http://www.tongkooiong.com/2013/12/dbkl-as...s-and_1247.html

and 2nd post:
http://www.tongkooiong.com/2013/12/dbkl-as...ies-and_28.html

thank you. notworthy.gif icon_rolleyes.gif
kochin
post Jan 7 2014, 09:15 AM

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QUOTE(MyKLTalks @ Jan 6 2014, 04:23 PM)
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
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My specific questions are the same as raised by the blogger which I will repost here for you to answer:

"To address the unhappiness of Kuala Lumpur residents, we hope DBKL will provide further clarity and transparency on the following questions :-

a) How much more assessment tax revenue will DBKL actually get after the revised assessment value and rates? The amount stated by DBKL appears understated relative to the scale of increases most of us will pay. If that is the case, are some residents getting far lower assessment tax than others?

b) What is the basis of computing assessment value? I know it is rental income (implied or actual) but what are the reliable sources of information or database used? DBKL should make the entire list of assessment values for all properties in KL available on the Internet. This will allow every resident the ability to check their assessment value against all others, in the interest of fairness and transparency.

c) A failure to be transparent would likely give the impression of possible biases in the way assessment values are determined, leading some residents to feel they are being penalized for choices they previously made.

d) How will the additional collections be spent? Tax payers have the right to demand accountability and responsibility. DBKL plans big spending under its 2014 Budget, but what are they for, and are they justified? Should DBKL be embarking on a spending spree when the whole country – including the Federal Government -- is tightening the belt? Why are its spending patterns and budgets so different from the Federal Government’s? As I have written in previous articles on this issue, DBKL is already spending more than other municipalities per person.

e) Are Kuala Lumpur residents also now expected to pick up DBKL’s bill for development expenditure, via the higher assessment taxes? Development expenditure for Kuala Lumpur has always been funded from the Federal government’s Development Budget, for which residents are already paying high personal income and corporate taxes. If so, then it amounts to new taxation."

To add on, what is DBKL's plan to reduce manpower since statistics have clearly shown that DBKL is having one of the highest staff to population ratio in the WORLD!

QUOTE(MyKLTalks @ Jan 6 2014, 10:56 PM)
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.
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Kindly refrain from using phrases such as "I believe", "it was noted from", etc.
It lacks credibility and besides, quite a number here have already requested for some credibility from your end. A simple attachment showing something ought to give you more creditworthiness in all your replies.

QUOTE(MyKLTalks @ Jan 6 2014, 11:42 PM)
It is not just rubbish, which eats into 14% of City Hall's budget last year. There are numerous other things that needs to be taken care of, such as roads, rivers, traffic systems, pedestrian walks, public parks, recreational centers, sports halls, etc.

The electricity bill for traffic lights alone costs over RM12 million.

And that is just maintenance.

City Hall or DBKL also develops the city. Last year, DBKL built 35 roads at a cost of over RM170 million. That's just roads. There are many other things that are being built and are part of the development cost.
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I would like to strongly refute this statement of yours. With more application for developments or refurbishment, developers are subjected to development and planning charges. These also would include contributions to ISF and DBKL security fund.
You claim DBKL have built roads at a cost of RM170mil. But how much of the RM170mil were from DBKL own fund or is it collection from others i.e. Development and planning charges.
Some if not most are basically contributed by developers.
Kindly advise whether the pedestrian walkway from Pavillion to KL Convention Centre is funded by DBKL or Petronas?
Roads. Potholes. Etc. It is to my understanding that each excavation on the surface requires a permit + deposit to undertake these tasks. Despite this, why are roads still so unpleasant within the city? More often than not, I have personally been asked many a times by tourists nearby KLCC/Jalan Bukit Bintang on why aren't the roads in a better shape when these are supposedly Malasyia's most iconic street/area?
Rivers. Are these under DBKL or JPS or DID's jurisdiction in terms of maintenance? If you are doing it on behalf of other department, why not backcharge the party at fault? Why use the KL Citizen funds instead?
Traffic System. What traffic system? How much does this accounts for the overall budget?
Pedestrian Walks. How much was contributed from ISF fund collected?
Public Parks. How much was commission in the past 5 years? How much was spend on landscaping alone in the city?
Recreational centers, sports hall. Again at what cost and statistics of benefits reaped from these ventures? These venues are usually funded by other departments and handed over local councils to maintain. Maintenance charges can be recouped vide rental charges. Why are so many centers such as badminton courts, squash courts, the velodromme in such bad condition with practically no maintenance at all?

I look forward to your precise and detailed replies on queries raised above.
Thank you.

kochin
post Jan 7 2014, 10:28 AM

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QUOTE(MyKLTalks @ Jan 7 2014, 10:12 AM)
Here are answers to your questions:

a) On Dec 24 2013, the Mayor was quoted in a news report saying DBKL expects around RM200 million from this exercise.

b) Publishing the entire Annual Value on the Internet as well as other mediums have been discussed. Stay tuned for any announcement one way or the other. There are issues to be considered, such as privacy, etc, as well as the general public interest and transparency.

c) Please refer to b)

d) The plans to spend the money can be found in the 2014 budget. The expenditure is higher per person than any other municipalities in Malaysia due to KL being the capital city with many more facilities and amenities to maintain and develop.

e) No, this is not true. Federal funding accounts for around 6% of DBKL budget for operating as well as development expenditure.

The rest:

1. Since the term mentioned in communications that the special incentive is for "OKUs, retirees and owner-occupied residences", it is most probably residential units. Nonetheless, the team will get a sample of the form within this week and would be able to advise further pn what happens if the owner occupies his own factory.

2. DBKL's income stream is varied, with a large portion (fluctuating around 50%) from Assessment Rate. DBKL's own funds - its cash reserve - have been used to cover any shortfall between income and expenditure, and is also one of DBKL's income stream, from an accounting perspective.

3. There were 47 roads built in KL in 2013. 35 were from DBKL's budget. You can get this info from the 2013 Mayor's budget speech.

4. The amount allocated for development is still from the CIty Hall budget. It is not a separate fund or budget, but a separate allocation from the same budget.

5. Development fees from construction is also another income stream for DBKL, as outlined in their budget. However, this stream is decreasing as less areas are available in KL for private development. It is also not the main income source as compared to the Assessment Rate.

6. There are some pedestrian walkways and other facilities developed by private companies and other enttities, not DBKL. DBKL does not claim credit for these developments.

7. There are over 120km of rivers under DBKL jurisdiction with over 330km of main drainage. DBKL maintains the hydraulic capacity of these rivers in order to avoid flash floods. DBKL does this in cooperation with other agencies.

8. Traffic systems in the city of KL cost RM60.9 million to maintain in 2013. This includes the Integrated Traffic Information System (ITIS), safety features, maintenance, traffic lights, signboards, etc.

9. Recreational centers, hawker centers, sports halls, sports courts, other buildings, etc cost RM75.4 million last year. That is after subtracting the very minimal fees charged. Should the city rely entirely on entrance fees or other fees for these facilities, the fees will be increased to cover over 70 million a year and the intention to keep KL residents active, healthy and communal will be hit.

If you really want all the detailed information and breakdown of income and expenditure, you can read the Mayor's budget speech.

Here is last year's budget speech (2014 budget speech also available on the DBKL website):

http://www.dbkl.gov.my/penerbitan/ucapan_b...nbajet_2013.pdf
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Thanks for the replies but you left out the following:

"To add on, what is DBKL's plan to reduce manpower since statistics have clearly shown that DBKL is having one of the highest staff to population ratio in the WORLD!"

To your item 5, can you kindly provide development charges collected in 2010, 2011, 2012, 2013 respectively? Somehow, 2013 does not seem to be decreasing in any way.

The process of calling for hearing have already commenced. I have received some notices but I fear I would not be able to attend given that notices were far too short (less than 48 hours notice in my case), and hearing is set to be middle of a work day. I attended once previously and I regret to inform that it is highly ineffective with more than 2 hours waiting time, etc.
The results is also far from satisfactory.


kochin
post Jan 7 2014, 10:36 AM

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QUOTE(grifterfmj @ Jan 7 2014, 10:31 AM)
Spend spend spend but

a) KL roads still flood and full of potholes
b) River still dirty like sewer
c) Honestly we don't need ITIS, just get everyone to use Waze
d) You build so many recreational centers yet Malaysian's are still obese!

and the final straw is now you come back and say, "OH cost is going up we need more tax"

Simple analogy la, you go to a mamak and order milo ais, the milo ais taste like water, then the owner says tomorrow we are increasing price because harga gula naik, you'd probably boycott that mamak til the end of time. If the mamak served you a decent milo ais that you love and enjoy very much, you would gladly pay because "hey, harga gula naik ma"

Maybe we should all boycott KL and move to PJ..
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agree.
too many white elephants around.
many of those hawker centres or sports centre totally underused.
not because they don't want to but because of many restriction.
why all hawker centre by dbkl built are purely halal? non-muslim are contributing to these funds too.
why can't people book your sports centre easily? must go through counter and sometimes need to pay undertable to secure bookings? and no longer than one month booking at a time?
kochin
post Jan 7 2014, 10:49 AM

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QUOTE(MyKLTalks @ Jan 7 2014, 10:41 AM)
In order to provide services necessary for the city, DBKL needs the manpower to do so.

The development charges are in the Mayor's budget speech for those respective years. The projected decrease in developmental charges is by 50% next year and will continue on a downward trend as less areas in KL are developed by private entities.

Your feedback concerning the public hearing is noted. The last time there was an Annual Value Revision was in 1992. I assume you attended a similar hearing then?

According to the NST Online news report yesterday, the attendees were commenting on how fast and efficient the hearings were. We are covering the hearings this week and shall report on what happens during one.

Thank you for your questions.
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I disagree that DBKL requires the existing manpower to do so.
Statistics have proven and shown other more renowned world class cities are operating at much less staff.
Based on your replies here, are you stating that decrease of manpower IS NOT AN OPTION to DBKL at all?

I requested for historical revenue stemming from development charges, not "projected decrease in the future".
This is to substantiate your claims of a decrease in the first place.
While land may decrease, but value increases. Development charge is based on land value, no? Hence revenue WOULD increase if same or even less amount of projects commence year to year.

kochin
post Jan 7 2014, 11:41 AM

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QUOTE(MyKLTalks @ Jan 7 2014, 11:18 AM)
The decrease or increase in manpower is ultimately up to DBKL. If you believe they should decrease their manpower and lay off staff, please send them the suggestion using the contact information provided above.

As for your historical revenue request, here are all the Mayor's budget speeches from 2002 - 2014:

http://www.dbkl.gov.my/index.php?option=co...id=1231&lang=ms

The projected decrease in revenue from development charges for the coming years is based on upcoming projects in KL. The decrease in number of development projects will not be sustained by other factors, hence a decrease.
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Since you refuse to extract it, i have taken the liberty to extract it for your perusal to refute your earlier claims:

(in RM'mil)
2010; 2011; 2012; 2013; 2014
assessment 755.08; 783.68; 810.53; 880.5; 1,130
kawalan binaan & perancangan 116; n/a; 239.7; 270; 272.5
*figure not available for development charge in year 2011?

the stats clearly shows an uptrend for revenue from development charge.
while assessment may have witness an increse in close to 50% within 2010 to 2014, but development charge has witness an outstanding 235% growth in the same period!

i rest my case!

while you claim to explain the rationale of the need to increase cost, it's cleverly and overly convenient you chose to ignore cost cutting measures. to me, it is a biased opinion to begin with.

This post has been edited by kochin: Jan 7 2014, 11:43 AM
kochin
post Jan 7 2014, 12:08 PM

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QUOTE(toh2020 @ Jan 7 2014, 12:02 PM)
kochin,

you are right track with current issues related to dbkl. does MyKLTalks really represent DBKL to address concerns by rakyat?

if that is so, since dbkl is consider overstaff. why don't their representative comes here to have a say to justify the hike. provide his/her authority card, contact and email. whererea on other hand, they dbkl have to engage 3rd party aka cybertrooper to talk things on their behalf. most of all parrot what beeing told. while many queries from readers are left unanswered. the best answer is please go to dbkl website and do what's being told there.

point noted was year end 31 Jan 2013 was dark day in history for dbkl. where the mayor of dbkl gets the loudest Boo from rakyat. i presume this is reason MyKLTalks are here to exist. basically just to test water. NOT to address concerns and real time issue.

in reality dbkl officers must to go to the field. face to face with rakyat. give the timeline and get things done.

we all have far more important things to do in life. lets not waste time entertaining cybertrooper. we all know time is money. there are more to be done for the day itself.
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i fully agree with you hence it is important to spread awareness to gen y who prefer to read postings in lyn.
if yours and my message gets across into their thick skulls, it would be another battle won!

what to expect with mentality of "if only 30% residents object to increase in assessment rates, means they agree!".
doh.gif

peace bro. i shall stop my rants in this thread. icon_rolleyes.gif
kochin
post Jan 10 2014, 04:28 PM

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QUOTE(ManutdGiggs @ Jan 10 2014, 11:49 AM)
Boss wat tiramisu boss meant is wat if no tenant??? Can ask for special rate boh. U have not answered.
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boss, you ask him for wat.
you should know better lah.

for commies and/or resi, you can use a separate form to apply for reduction for non-tenanted buildings.
this can be done vide submittals of utilities bills for 3 months to show prove of low/non usage. this is to proof that there's no tenant or usage of the property.
the same can be applied for vacant land.


other than that, there's a separate form for application for own stay, retirees or handicapped personnels.
rather than advising you guys to go to dbkl and get the form, a more sensible approach would be to attached the form here for you guys to download and submit instantly. the form can be photocopied.

a person or company (especially if one's paid or commissioned to undertake it), should deliver results and states what he/she knows. not just stating the obvious and repeating 'standard common knowledge'.


the very first batch of hearing started on 8th January 2013.
hearing is classified by development or taman.
once the development or taman is called out, all owners go in together to state their case.
give justification and if sensible, prices may come down.

if nobody turn out deemed accepted! vmad.gif mad.gif

i hope forummers learn from this quote rather than learning some unuseful run of the mill answers.


Attached File(s)
Attached File  reduction_in_assessment_dbkl_form.pdf ( 29.93k ) Number of downloads: 95
kochin
post Jan 10 2014, 04:29 PM

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» Click to show Spoiler - click again to hide... «


please read my post above.
kochin
post Jan 12 2014, 12:04 PM

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Again you are contradicting yourself.
No doubt expenses are necessary to maintain a good upkeep of a city. But at what cost.
Any comparison done with other world class cities?
The issue is the citizens are not happy at how the expenses were spent. Ridiculous quantum wasted on unnecessary projects. White elephants such as rm1mil public toilets, unutilised sports complexes in the middle.of no where, shoddy walkways with huge spendings, etc.
Why are nasi lemak stores still allowed to operate with your dbkl staff happily purchasing it?
For god's sake, there is even a daily gerai just opposite dbkl building behind epf building. Sooooooo convenient for illegal trader to set up stalls and stands everywhere in our world class cities. You want proof, those are hard core proof.
Stop propagating lies that it is just.
Justice fairness is justice denied.
Until the day dbkl realise and admit that they are wrong and starts rectification of their faults is the day that dbkl starts to go on the right path.
Budget is a very simple thing. There is only inflow and outflow. If the inflow is capped, one should look at the outflow. So far all reports still concentrate on inflow only.
Walk the talk.
Tell us how many staff are there in dbkl over the population ratio. What was the amount paid for overtime last year?
kochin
post Jan 15 2014, 12:35 PM

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http://www.themalaymailonline.com/malaysia...rty-tax-hearing

whistling.gif whistling.gif whistling.gif
kochin
post Jan 6 2016, 09:03 AM

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QUOTE(jepakazoid_82 @ Dec 29 2015, 11:22 AM)
I called my condo management office yesterday. It seems that they have paid DBKL both the Quit Rend and Assessment earlier this year. According to them from next year onwards I will need to pay it myself direct to DBKL. Is this the normal way?

Thanks.
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whatever condo management paid on behalf, they would need to charge back to respective owners.
kochin
post Jan 6 2016, 09:05 AM

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QUOTE(jepakazoid_82 @ Dec 28 2015, 01:45 PM)
Hi Guys, for newly completed unit, when do we need to start paying the assessment rate? Is it one year after VP?

Also is there a way that I can get the account number if I do not have the letter with me?

My tenant said she he has not received any letter from DBKL. Tenant is expat so not sure if she understands which letter is from DBKL.

Thanks guys.
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you can try giving DBKL full address to do a search.
sometimes they only release the information to owners as per SPA.
if the name that appears on the bill matches your IC, you can get a copy.

key word: sometimes.

 

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