The Penang state government said today it will absorb RM55.19 million in assessment rates for all property owners and Goods and Services Tax (GST) for all its services in the state this year.

While launching an awareness drive on the assessment rate exemption at Penang Island City Council (MBPP), Penang Chief Minister Lim Guan Eng said all low-cost, low medium-cost housing and kampung house owners in the state are exempted from paying assessment rates this year.

“The remaining property owners, including commercial properties, will be given 6 per cent reduction,” he said at the City Hall here.

The exemptions will amount to RM14 million, the cost of which will be absorbed by both the MBPP and the Seberang Perai Municipal Council (MPSP).

As for the 6 per cent reduction in assessment rates for the remaining property owners in the state, it will cost both councils RM21.74 million in total.

On top of that, both councils have also waived GST charges for its services, such as parking fees, and will have to bear the GST costs of RM19.36 million for both councils.

Both councils had already waived GST charges of RM19.36 million last year.

“We expect the economy to worsen in months to come especially with the increase in petrol prices and also increase in cooking oil prices so this exemption and reduction in assessment rate is to ease the people’s burden,” Lim said.

He said the state was able to give these exemptions and reductions because of its annual budget surpluses.

Source: TheMalayMailOnline.com