Seberang Perai City Council Grapples with Assessment Fee Arrears
Millions in Assessment Fee Arrears
The Seberang Perai City Council (MBSP) is facing a significant challenge in collecting assessment fees from ratepayers, with a total of RM30.57 million in uncollected fees as of October 22.
Efforts to Recover Arrears
Local government committee chairman Jason H’ng said that the council is taking proactive steps to recover the arrears, including the involvement of debt collectors, the activation of a special task force to handle delinquent accounts, and lucky draws for ratepayers who pay up their dues on time.
Importance of Assessment Fees
H’ng emphasized that the assessment fees are essential for sustaining municipal services and development projects in Seberang Perai. "The council is taking proactive steps to ensure these taxes are collected, as they are essential for sustaining municipal services and development projects," he said.
MBSP’s Financial Situation
As of October 22, MBSP reported a revenue of RM304.4 million and expenditure of RM259 million. The council is expecting a significant boost in revenue next year, with a new property valuation list expected to generate an additional RM10.8 million in assessment taxes. This year alone, 6,650 taxable properties have been added to the council’s list.
MBPP’s Financial Situation
Meanwhile, the Penang Island City Council (MBPP) is facing rising operational costs, with staff salaries and emoluments set to take up 43.3% of its total expenditure in 2025. The increase follows the adjustment of the salaries of civil servants under the new public service remuneration scheme (SSPA), which came into effect this month. The salary adjustment is expected to add RM15 million to the council’s payroll bill for 2025.
Workforce and Revenue
H’ng said that MBPP’s workforce consists of 3,630 personnel, including 3,458 permanent staff and 172 contract workers. To address the growing costs, MBPP will rely on increases in revenue from non-tax sources, including fees for services, which are projected to grow from RM56.48 million this year to RM74.33 million in 2025.
Conclusion
In conclusion, the Seberang Perai City Council is facing a significant challenge in collecting assessment fees, but is taking proactive steps to recover the arrears. The council’s financial situation is expected to improve next year, with a new property valuation list expected to generate additional revenue. However, MBPP is facing rising operational costs, which will be addressed through increases in revenue from non-tax sources.
Frequently Asked Questions
Q: What is the current state of assessment fee arrears in Seberang Perai?
A: As of October 22, there are RM30.57 million in uncollected assessment fees.
Q: What are the efforts being made to recover the arrears?
A: The council is involving debt collectors, activating a special task force, and offering lucky draws for ratepayers who pay up their dues on time.
Q: What is the projected revenue for MBSP next year?
A: The council is expecting a significant boost in revenue, with a new property valuation list expected to generate an additional RM10.8 million in assessment taxes.