GEORGE TOWN, March 17 — Penang Chief Minister Chow Kon Yeow has clarified that the calculation of land tax in the state is based on four key criteria: land use, land size, location (urban or rural), and the tax rates stipulated under the Penang State Land Rules gazetted on September 11, 2025.
Speaking at a media briefing in Komtar on March 16, Chow said land titles issued before Merdeka, known as First Grade Grants, are now assessed based on the current usage of the land, even if the title does not specify a category.
He noted that many affected landowners had previously paid extremely low taxes — sometimes below RM10 — for more than three decades, which explains the sharp increases following the 2026 review. According to the state’s land records, there are about 230,000 pre-Merdeka land titles registered in Penang.
The Chief Minister explained that increases in land tax are largely due to changes in land use, size, and whether the land is categorised as urban or rural. For instance, land used for commercial or industrial purposes above one hectare could face significantly higher rates compared to agricultural land.
Chow added that the state executive council approved improvements to the land tax appeal guidelines on March 11, including clearer definitions for village housing categories. Landowners who have submitted appeals will receive decisions soon. While others are encouraged to contact their respective district land offices for clarification or to lodge appeals.
