Lim Guan Eng has urged the Penang government to defer its scheduled land tax increase and water tariff hike for at least one year, arguing that the state should not add to the public’s financial burden amid global economic uncertainty.
The Air Putih assemblyman and former Penang chief minister said the freeze would cost the state government and the Penang Water Supply Corporation (PBAPP) about RM70 million in foregone revenue — an amount he insisted both entities could absorb.
Speaking when debating the governor’s address in the Penang state assembly, Lim said the state was expected to collect an additional RM50 million from the land tax revision, while PBAPP would gain about RM20 million from an average 20 sen per cubic metre increase in water tariffs scheduled from 1 July.
“The RM50 million and RM20 million can be borne by the state government and PBAPP, respectively,” he said.
He added that the impact on ordinary people and businesses would be far greater than the additional revenue gained by the state and PBAPP.
Lim said the proposed freeze should last for one year, or until the global economic crisis eased. The conflict in the Middle East had pushed up oil prices, disrupted supply chains, and increased the cost of raw materials and logistics.
If the state government or PBAPP urgently needed the funds, they could seek financing from the federal government instead of passing the cost on to the public, Lim added.
In May last year, Penang Chief Minister Chow Kon Yeow said the state was facing a cash flow problem and a possible deficit of up to RM500 million, prompting it to seek a RM100 million advance from Putrajaya.
Lim also criticised the proposed agreement to purchase treated water from Perak, calling for the deal to be tabled in the state assembly before it is signed.
He warned that the agreement could push PBAPP’s tariffs to RM3 per cubic metre or more — nearly five times the current average tariff of 62 sen.
“While 20,000 litres would cost about RM12.40 at 62 sen per cubic metre, the same volume would cost RM60, before other charges were added, if the tariff was raised to RM3 per cubic metre,” he said.
The treated water supply project is expected to start in 2031, with higher tariffs taking effect in about 10 years. Lim argued the decision should not rest solely with PBAPP or PBA Holdings Bhd board members, as it affects the public water supply for all 1.8 million Penangites.
Source: FMT
