GEORGE TOWN, February 17 — The Penang Chief Minister’s Office clarified that the recent increase in land tax, particularly for First Grade titles, is based on the land’s current use rather than a rise in residential rates, noting that many of these lands have been taxed at nominal rates since 1994.
Under the new system, properties used for residential, commercial, or industrial purposes are now taxed according to actual use, with rates varying by category and location, while owners are given the opportunity to appeal for reductions up to RM20,000.
With considerations including public use, financial hardship, or mixed-use developments. The state government emphasized that the 2026 tax review aims to standardize rates across all land categories, including industrial, residential, commercial, and agricultural lands.
While providing affected owners, particularly those with First Grade titles or properties transitioning from rural to urban classification, ample time and rebate options—such as a 50% rebate this year—to adjust to the new tax assessment.
Appeals exceeding RM20,000 can be escalated to the Land and Mines Director and the State Executive Council, ensuring a fair mechanism for resolving grievances.
