GEORGE TOWN, February 21 – Penang Chief Minister YAB Chow Kon Yeow has addressed concerns raised by Ratepayers Penang regarding the 2026 land tax review and the reclassification of Desa (Country) Land to Bandar (Town) Land.
Explaining that the review was necessary to correct disparities caused by decades-long delays. The last tax review was in 1994 and the previous town gazettement in 1966, resulting in a widening gap between Desa and Bandar rates as the state developed.
The government has introduced a 50% rebate and enhanced appeal mechanisms to ease the impact on landowners, while ensuring that tax rates now reflect current land usage and comply with the National Land Code, creating a fairer and more transparent system.
Chow highlighted that some First Grade landowners had been paying far below actual rates for 30 years under outdated agricultural classifications, and that recalculations based on current commercial usage, though higher, align taxes with present economic realities.
He emphasized that the new structure consolidates Desa and Bandar classifications into single rates, provides clear rebate and appeal procedures, and represents a fair approach to ensure equity among all landowners while supporting Penang’s continued urban and industrial development.
