PROPERTY TAX ADMINISTRATION IN WEST MALAYSIA

Abstract

Under the federal structure of the Malaysian political economy, the importance of local property taxation cannot be over-emphasised. The efficient and effective operation of the local property tax administration underscores the issue of local government finance which in turn determines the adequacy and quality of municipal services provisions. Significant financial contribution is yet to be realised by its latent potential through a more effective administrative machinery. The current system, though still plagued with various legislative shortcomings and administrative deficiencies, seems to be functionally and operationally adequate. Subject to constant review and sincere action towards improvement of the system, it can achieve greater equity and public confidence in the overall system. There is scope for improving the administration of the system. The creation of a Centralised Valuation Authority could lead towards a more integrated system than the one at present. In the shorter term, privatisation of the revaluation exercise would be worthwhile considering. The more enlightened and demanding ratepayer may give rise to more rating and valuation disputes. A Valuation Tribunal could serve as a long-run effort in the expeditious and equitable disposal of these disputes.