News: Fast Track NIL Initiative To Address Spike In Quit Rent

Jan 15, 2020

The Fast Track NIL initiative that was introduced by the Johor government, aims to address the issue of the spike in quit rent resulting from the recent tax structuring. Tan Chen Choon, chairman of the Johor local government, urban wellbeing and environment committee, said the initiative would solve the issue especially with lands having the “nil” status.

“This is a quick route for applicants to change the nil status of their properties to actual use categories involving residential buildings, commercial, industrial and agricultural,” he said.

The Jementah assemblyman explained that applications would be approved within seven working days, provided that all the necessary documents were complete. He also clarified that in the meantime, landowners need not pay quit rent if they apply through Fast Track, reported The Star.

“Landowners have to pay the quit rent only after their application has been approved,” he noted.

MCA president Datuk Seri Dr Wee Ka Siong highlighted the issue recently, saying that as of this month, lands having the “nil” status have had their quit rent raised significantly ever since the tax restructuring started.

Do you know the difference between quit rent and assessment rates? Find out here!  

“There was a case where the quit rent has increased from RM90 to RM750 in Kluang, and another case, an increase from RM7 to RM150 in Tangkak. In Johor Baru, there was a case where the tax increased from RM100 to RM1,000 and in Tebrau, an increase from RM5,275 to RM21,000 was recorded,” he said.

Johor Mentri Besar Datuk Dr Sahruddin Jamal clarified that those affected by the rise in quit rent were encouraged to head to their Land and Mines Office (PTG) in their district to fill out a form.

“The tax rate for flats and terrace houses does not change and if there are any changes, the landowners are advised to come to any PTG and check the land status; if the land status is nil, they have to change it,” he said.

“This usually takes a lot of time but under the Fast Track NIL initiative, the change can be done in seven days.”

He added that landowners wanting to change their land status can now do so at their respective land district offices.

Tan said the state government has already authorised the district land administrator to approve applications for changing the “nil” status to another category of use.

“For any approved applications where a 7G notice (notice for payment due) has been issued, landowners are required to pay the premium and other fees within 30 days from the date of the notice,” he noted.

The Fast Track NIL initiative would be in place until 31 March.

 

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Ron Tan
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