Penang revises late payment penalties for quit rent, parcel rent

GEORGE TOWN, May 9 — The penalty for late payment of quit rent and parcel rent will now be based only on the annual tax amount instead of the total arrears, said Penang Chief Minister Chow Kon Yeow.

He said the state executive council decided in a meeting on February 7 this year to review the calculation of late payment penalties for quit rent and parcel rent in Penang as it previously involved penalties being imposed arrears owed.

“The late payment penalties in Penang will be calculated based on the annual tax and will not involve the total arrears owed and overall late penalty arrears,” he said in a statement issued today.

Therefore, landowners who pay their quit rent and parcel rent after June 1 will only be imposed a penalty of 10 per cent and five per cent, respectively, based on their annual tax amount.

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“This new calculation of late penalties is not retrospective and does not apply to those who have already paid their late penalty arrears before this revised penalty rate is implemented,” he said.

He said previously, landowners were charged a late penalty of 10 per cent for quit rent and 5 per cent for parcel rent for the total amount owed including tax arrears and late penalty arrears.

He said the state is committed to introducing initiatives to encourage Penang landowners to pay their quit rent and parcel rent as provided under the National Land Code and Penang Land Rules.

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Landowners who need more details on the revised late penalty rate may contact the Penang Land and Mines Office or the nearest district office.