The Penang Land and Mines Office is calling on property owners to take advantage of a 100% penalty waiver on overdue land and parcel tax payments before the February 28, 2025 deadline. Announced by Chief Minister Chow Kon Yeow in December 2024, this initiative aims to encourage prompt tax payments and reduce arrears.

This call to action was highlighted in an interview with Buletin Mutiara, where Director of the Penang Land and Mines Office, Dr Faizal Kamarudin, emphasized that the initiative is designed to ease the financial burden on property owners while improving tax collection efficiency.

“As of December 31, 2024, unpaid land and parcel taxes in Penang amount to RM31.65 million, with penalties totaling RM39.26 million. Property owners who act now will only need to pay their 2025 tax and any outstanding amounts without additional penalties,” he stated.

Limited-time discount for late payments

For those unable to meet the February deadline, a reduced penalty scheme will be in place. From March 1 to May 31, 2025, property owners who settle their arrears will receive a 50% reduction in penalties. These incentives, however, apply only to lump-sum payments.

Serious consequences for non-compliance

Dr Faizal also issued a stern warning about the legal consequences for failing to pay land and parcel taxes.

“Authorities, under Sections 97 to 130 of the National Land Code, have the right to forfeit properties with long-standing tax arrears and transfer ownership back to the state. In 2024 alone, 191 properties valued at RM67.47 million were forfeited due to unpaid land taxes,” he noted.

Furthermore, he cautioned that forfeited properties could lead to further legal action from financial institutions if they were under mortgage agreements.

Tax obligations cannot be ignored

Dr Faizal dismissed claims from some landowners that they did not receive their tax bills, stressing that this excuse does not exempt them from their obligations.

“In states such as Johor, Negeri Sembilan, Perak, Melaka, Kedah, Kuala Lumpur, Selangor, and Terengganu, tax bills are no longer issued physically. By law, land and parcel owners must settle their taxes between January 1 and May 31 annually. Late payments incur penalties, and prolonged non-payment can result in property forfeiture,” he explained.

The Penang Land and Mines Office urges all property owners to take immediate action, settle their outstanding taxes, and avoid unnecessary legal complications.