Tong Kooi Ong of theedgemalaysia.com has written a brilliant response on why the assessment rate should not be raised.
Assessment rate should be tied to the costs DBKL incurs in providing its services NOT because property prices have increased. I believe as long as DBKL’s operating costs are adequately covered by revenue, there should be no reason to increase assessment taxes.
With this in mind, let us look at DBKL’s finances.
Although DBKL budgeted a total expenditure of RM2.19 billion compared to its expected revenue of RM1.62 billion, keep in mind that development expenditure is largely funded by the federal government and leftover operating surpluses, as it has been for a very long time.
The budget for operating expenses is RM1.406 billion, which means revenue already covers operating costs. In fact there is an operating surplus of over RM200 million, which is used to partly fund development expenditure.
The development budget of DBKL (RM782.6 million) is funded by the development budget of the country for which residents of Kuala Lumpur already pay corporate and personal income taxes.
DBKL should ensure the taxes we pay are spent transparently and responsibly. It is not right to keep going back to the people for more money.
Remember this, KL residents?
Less than a year ago, the KL Mayor has assured city dwellers that there will be no increase in assessment rate [source]. Liar, liar pants on fire.