LOCAL COUNCILS

Date: 26/03/2008 [WEDNESDAY]

Local councils in the country ought to review the current system of revenue collection so as to find effective system of increasing revenue which commensurate with continued satisfactory services to rate payers. SARAWAK Environment and Public Health Minister, Datuk Michael Manyin Jawong says the current Annual Rateable Value, ARV implemented in all councils except Johor Bahru seems not to be very effective in generating enough revenues for the councils. It also caused disastisfaction among rate payers some complaints of being over taxes while others are not satisfied with the various services provided. He points out that councils in Sarawak who have not review their ARV since 43 years ago, are the worst affected. Some smaller councils could not even cover their operating cost for the year. Consequently rendering his Ministry to fork in some six to eight million ringgit every year to cover such operating cost of the council's concerned.

Thus is it high time for them either to replace the currently Annual Rateable Value, ARV system with the Market Value, MV system or implementing both systems. MV had been successfully implemented in Johor Bahru Council and in many European Councils. Datuk Michael Manyin said this at a welcoming dinner last night in Miri City for 175 valuers from councils throughout the country except Penang, who are attending the 12th National Valuers' Meeting of Local Councils. The Minister added that Sarawak plans to adopt both systems - ARV and MV of valuing rateable properties in its efforts to increase revenue and at the same time provides efficient services. The 2-day meeting discusses among others, strategies for enhancing the revenue of local councils through assessment rate, as well as "Control of Properties in-lieu of rate" especially on government properties.