Gerakan Selangor: SELANGOR’S 2017 BUDGET burden the rakyat with high land premiums and land tax ; House buyers and SME entrepreneurs are at the receiving end (3.11.16)

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Gerakan Selangor criticized the Selangor government for being more keen to take full advantage of the high land premiums to boost up the state revenue for 2017 rather than making efforts to assist the house buyers and SME entrepreneurs suffering from the sharp premium hikes. 

In a statement released today, Gerakan Selangor Chairman Dato David Ang said since the Pakatan Rakyat coalition took over the state government of Selangor in 2008, there has been a sharp increase in land premiums from land conversion and extension of land lease; which contributed to the State government high revenues. For the 2017 budget, it is estimated that 81.7% of the state government expected revenues for 2017 come from land premium, land tax and land related transactions.

He also notes that PGRM is disappointed that the contribution to the state revenues from State owned companies under MBI has not been highlighted. The state government must be transparent and inform Selangorians the contributions from state owned companies like KDEB and PNSB.

” The high land premiums paid by developers and land owners ultimate are pass on to buyers of residential houses/apartments and SME entrepreneurs buying small commercial factories. Gerakan believes this is one of the major contributing to high house prices in Selangor causing much hardship to first time house buyers.”

In the 2017 Budget, land premium revenue contribution towards the state revenue increased by 6% (RM300m) to RM1.382b, about 54.2% of total revenue of 2017. In 2016, it was RM1.082b, about 48.1% of total revenue of 2016. Azmin said the state revenue will increase 13.3% (RM300m) – from RM2.25b in 2016 to RM2.55b in 2017.

“Under the BN state government for example, an acre of agriculture or industry land can have its lease extended to 99 years for as little as RM300,000.00. Today, it cost as much as RM 1.2m. This is the same for conversion of land use from agriculture to industry. The sharp increase in the land premium charged by the state has caused many small landowners to suffer.” David added.

“Worst still, the remaining years in the existing lease will be forfeited and no discount given to reduce the high land premium charged.”

He said the premium hike also caused the delay of some projects which benefiting the Selangorians, i.e. Federal allocated RM3m to build a fire station in Setia Alam but the Selangor state government imposed a RM4m land premium, causing the project to be abandoned.

“On the whole, Gerakan Selangor sees the RM 3.45 b Selangor state budget with an expected deficit of RM900m as an election budget for the coming PRU 14. The Pakatan Harapan + PAS state government is very aware of the unhappiness of Selangor voters towards their performance and has thus decided to spend so as to regain their confidence.”

“Issues like frequent water shortage, bull dozing of new highways in developed housing and commercial area, high land premiums for renewal of land lease and conversion of land use from agriculture to housing or industry are some of the grouses of the rakyat.”

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