LC doing opposite with rate hike
Published on: Thursday, March 26, 2020
By: Sohan Das
File photo from Bernama.
LABUAN: The Chinese Chamber of Commerce here questioned the uncaring attitude of Labuan Corporation in imposing a huge leap in assessment rates for prime commercial / industrial lots in town despite the gloom brought about by Covid-19 and already depressed economy.It said the Corporation was surely aware that long before Covid-19 struck the Island’s economy was already hit by the drastic drop in crude oil prices.
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Its Chairman Datuk Wong Kii Yii said the Corporation should take notice of these grim messages and make decisions that are realistic and helpful so that businesses could be sustained during these difficult times instead of driving the sector to insolvency.
He was commenting on the assessment notices issued by the corporation based on the revised higher market value of the property.
Citing an example, Wong said a multi-storey hotel along Jalan Tun Mustapha which last year paid an assessment bill of RM45,000 is now being asked to pay RM74,375.
“Many others are also affected because the Corporation had chosen to ignore the pleas from chambers and others, including the local Member of Parliament Datuk Rozman Isli and went ahead to impose the rate based on the new revised evaluation of the property.”
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He noted that what the Corporation had done was merely reduced the assessment percentage from 7.5 per cent to 4.35 per cent. “This resulted in some assessments bills going even higher. So where is the promised relief?” asked Wong.
He said Covid-19 and the dip in oil price would have a huge adverse affect on the local economy which is dependent on both these sectors for survival.
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“They are the two pillars of Labuan economy, it is very difficult period for the business community and the Labuan Corporation should provide remedies and not aggravate the situation. If shops close, it (LC) will earn zero income,” Wong said.
He said it was not too late for LC to rectify the situation to put the rates on hold and use the rates of last year until the circumstances improve.Stay up-to-date by following Daily Express’s Telegram channel.
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