Key geographical features on malaysia's land tax system: A comparison study in Negeri Sembilan, Malaysia

Abstract

Land tax or quit rent constitutes a form of tax levied against all alienated land in Malaysia. According to Federal Constitution, land is a state matter which mean it is the right and responsibility of the state government to administer the land in the jurisdiction. Though mandated, state governments also have responsible to assess and collect land tax. The amount of land tax on the ownership of unimproved or improved land, generally varies from state to state and within each state it also varies according to geographical physical features. In view, this paper investigates the primary geographical features that influencing the land tax and compare the differences rate in the case study area. This study using desk research approach from secondary resources. The result shows that the land tax rate primarily subject to land classification, locality and category of land use. Generally, all states have different rates for agricultural, building or industrial land based on the State Land Rules. Under each category of land use such as building, there are again different rates depending on whether the land is used for commercial or residential. Further, the evidence indicates that not all land used for such usage i.e. residential purpose has the same rate, depends on whether the land is classified as a town, village or country land. It also depends on the district where the parcel is located. The findings provide strong support for future land legislation policy reforms, along with other geographical features, in local land taxation system.