The assessment rate hike by Kuala Lumpur City Hall (DBKL) will be effective January 1 as planned and will not burden property owners.

Federal Territories Minister Datuk Seri Tengku Adnan Mansor said, a panel has been formed to study and get feedback and did not dismiss the possibility of reducing the rate increase.

"As a caring government, we will hear from all quarters and will make a decision for the good of DBKL and property owners. We are not trying to punish the people but it (hike) should be fair to both parties," he told newsmen at his office here Friday.

On Wednesday, Deputy Federal Territories Minister Datuk Dr J. Loga Bala Mohan told parliament that the assessment rate hike had been deferred until March to listen to feedback starting from January.

However, Tengku Adnan then clarified that implementation of the new rate was effective Jan 1 as planned.

The minister said, until the panel comes to a decision, property owners could defer payment of assessment.

"I apologise to KL residents as the notice to property owners had caused confusion. Maybe my officers were insensitive.

"Before the notice was issued, it should be communicated to me first. If I knew about the notice, I would not have allowed as it only confused the people."

The rate review will be based on rental and not the property value and will allow property owners to know the real value compared to 21 years ago.

Tengku Adnan said DBKL can use the money collected from the new assessment to provide the best service to the reidents.

"DBKL needs money to make KL a sustainable city equipped with various facilities. The cost of garbage collection alone is RM14 million monthly. This does not include damage to public facilities.

"When you want something nice and good (service), you got to pay for it. When you pay peanuts, you get monkeys."