QUIT RENT OF LAND USED FOR SCHOOL PURPOSES IN PENANG STANDARDISED TO NOMINAL RATE OF RM50

GEORGE TOWN, Jan 21 (Bernama) -- The Penang government has decided to standardise quit rent payments for all school land in the state at a nominal rate of RM50 per title, effective this year.

Chief Minister Chow Kon Yeow said the decision was not intended to increase the financial burden on schools, but rather to ensure a uniform payment rate so that all schools are charged the same amount.

“Prior to the 2026 tax revision, the quit rent for land used for school purposes was levied at the building (residential) rate. Following the revision, we decided that school land owned by the Federal Land Commissioner would be subject to a nominal tax of RM50 per title, involving 106 titles.

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“For school land not owned by the Federal Land Commissioner, a nominal tax of RM50 per title will also be imposed, involving 201 ownership titles.

“However, international schools are exempt from this rate as they fall under the business category and are taxed accordingly,” he said at a press conference at his office in KOMTAR here today.

Chow said that previously, some schools had to pay several thousand ringgit in quit rent.

“Now, they only pay RM50 per title. This is not an added burden, but a standardised rate for all schools,” he said.

Meanwhile, Chow said the issue of higher quit rent rates faced by some landowners, particularly those involving “First Grade” land, followed a comprehensive review conducted after 30 years.

He said the revision was based on current land use, in accordance with the Penang State Government Gazette dated Sept 11, 2025.

“The state government has not reviewed quit rent rates since 1994. As a result, many ‘First Grade’ land parcels were still being taxed at agricultural rates, even though their actual use had long changed to residential, commercial or industrial purposes,” he said.

As an example, Chow cited a parcel of First Grade land in Seberang Perai Selatan measuring 10,800 square metres, which was previously taxed at RM33 per year under the agricultural category.

Following verification that the land was being used for industrial purposes, he said, it is now taxed at RM3.25 per square metre, bringing the total annual tax to RM35,101.

“Although the increase may appear significant, it reflects the actual rate that all industrial landowners in Penang are required to pay. This measure is fairer and more equitable, as it ensures no landowner continues to pay a lower rate solely due to First Grade status,” he said.

To help ease the burden on landowners, Chow said the state government has approved a 50 per cent quit rent rebate for all landowners in 2026, subject to the minimum rate and stipulated conditions.

-- BERNAMA