“Penang announces full exemption on quit rent and parcel rent penalties for payments by Feb 28, 2025, and a 50% reduction for payments by May 31.“
Kuala Lumpur, 26th Dec 2024, 01.40pm – The Penang government has announced a comprehensive initiative to waive penalty arrears on quit rent and parcel rent payments. This move, aimed at easing financial burdens and encouraging prompt tax settlements, was detailed in a statement by the Chief Minister’s Office on Thursday.
From January 2 to February 28, 2025, all land and parcel owners in the state will enjoy a 100% exemption from penalty arrears on both quit rent and parcel rent payments. Furthermore, for those who make payments between March 1 and May 31, 2025, a 50% reduction in penalty arrears will be granted.
These incentives also extend to property owners who have received Notice of Penalty 6A (land tax) or Notice of Penalty 11 (parcel tax). However, the Chief Minister’s Office clarified that the offer will not apply to individuals paying in instalments or those who make late payments prior to the effective dates.
Significant Penalty Arrears
According to state authorities, Penang currently has 40,371 land tax accounts and 67,537 parcel tax accounts with outstanding penalty arrears totaling RM40.1 million. The Chief Minister’s Office warned that if these taxes are not settled promptly, the affected properties risk forfeiture by the State Authority, as stipulated by the law.
“The high number of overdue accounts reflects a pressing issue that needs resolution. These incentives aim to encourage property owners to settle their dues promptly while reducing their financial strain,” the statement said.
Purpose and Goals
The state government emphasized that the initiative is intended to:
- Encourage early tax payments for 2025, preventing further accumulation of arrears.
- Ease the burden on property owners, particularly those with significant penalty arrears due to late payments in previous years.
- Avoid potential legal action or forfeiture of properties, which could otherwise occur under existing regulations.
“This initiative also supports the state’s financial management goals while fostering a sense of responsibility among property owners to comply with their tax obligations,” the statement added.
Payment Options
To facilitate this initiative, payments can be made at the District and Land Office revenue counters or online through the PgLAND portal. However, the state government requires all payments to be made in lump sum amounts, as partial payments or instalments will not qualify for the penalty exemptions or reductions.
A Call for Action
The state government strongly encourages all land and parcel owners to take advantage of this opportunity to resolve their arrears and avoid further complications.
“By settling their dues within the stipulated timelines, property owners not only benefit from the exemptions but also contribute to the efficient administration of the state’s financial resources,” the Chief Minister’s Office said.
With the initiative set to take effect from January 2, 2025, the Penang government hopes this move will ensure better compliance and ease the financial strain on thousands of property owners across the state.
