Penang’s 2026 quit rent revision and township reclassification address 30-year-old rate inequities, with a 50% rebate to ease the transition for landowners.

GEORGE TOWN: The Penang government has defended its upcoming quit rent increase, stating it is essential to correct long-standing inequities from rates unchanged for 30 years.

Chief Minister Chow Kon Yeow said the 2026 revision and gazettement of 25 new townships are mandated under the National Land Code.

The last rate revision was in 1994, while urban area classifications have not been updated since 1966.

“The absence of a revision over such a long period has resulted in unfair quit rent disparities between rural and urban areas,” Chow said.

He noted areas like Seberang Jaya, Bertam and Bandar Cassia are now developed and warrant reclassification.

The state issued its statement to counter claims by the Penang Ratepayers Association and clarify its legal authority.

It highlighted cases where landowners paid minimal agricultural rates on land used commercially for decades.

Chow cited a first-grade land title in Seberang Perai Selatan measuring 16,035.64 square metres.

It was previously charged an annual agricultural quit rent of just RM48.

Investigations now show the land is used commercially, with a rate of RM3.25 per square metre.

This results in a revised annual quit rent of RM44,900 based on the current use and area.

“This demonstrates the landowner had benefited from an excessively low quit rent rate for three decades compared with other taxpayers,” Chow stated.

To mitigate the impact, the state is automatically providing a 50% rebate to affected landowners.

The revised quit rent structure takes effect from January 1, 2026.

 The Sun Malaysia