THERE will be an increase in assessment rates effective from Jan 1, 2006 in areas under the Ampang Jaya municipality, according to MPAJ president Ahmad Shafii Saidin. 

The increase, however, will not exceed 10% of the current tax rate. 

He said MPAJ was supposed to have increased the tax rates this year but decided to postpone it to give taxpayers sufficient time to prepare. 

Ahmad Shafii said he had earlier proposed for a 1% increase in tax rates across the board for the various asset categories. The different types of assets are imposed with different tax rates. 

Ahmad Shafii … 'since 1992, the rates have not been increased'

For residential land, the new rate is 6% and business land 6.5%. . Others include industrial land at 7.15%, agriculture land at 1.1% and Malay reserve land at 2.2%. 

“Since 1992, the rates have not been increased,'' said Ahmad Shafii. 

He also cited several reasons for the increase in tax rates. 

“We have about 141,000 asset holders in the municipality and the cost of maintenance is about RM105mil every year. This means we spend about RM744 in maintenance cost for an asset. 

“However, we only collect RM65mil in assessment taxes annually. This means each taxpayer is only paying about RM460. The council has to subsidise the rest. 

On dengue, Ahmad Shafii said the situation in Ampang Jaya was under control, adding that the council would be carrying out fogging, gotong-royong as well as take other safety measures. 

In the latest development pertaining to Kampung Berembang squatter area, he said 350 families involved in the move would vacate by Dec 1. 

“The developer is expected to start constructing new homes at the Kampung Berembang site by mid October. About 270 families will be moving into a residential area in Puchong under City Hall while the others will rent houses elsewhere.” 

Ahmad Shafii added that the 900 squatter homes in various areas in Ampang Jaya would be vacated in phases. 

“We hope to achieve zero squatter status by the middle of next year.