Johor to impose development charge on Sept 1

State Housing and Local Government Committee chairman Datuk Md Jais Sarday said the development charge aimed to increase the income of the local authorities (PBT) which could subsequently be used to upgrade public infrastructures.

He said the charge had been approved by the State Planning Committee Meeting on July 4, and it would be applied for the land use change, density change and change of floor area.

He added the charge was a form of payment under Section 32 of the Town and Country Planning Act 1976 (Act 172) imposed by the Local Planning Authority (PBPT) to applicants or land owners.

"For example, the charge will be imposed on a land which previously was registered as agriculture land to be changed to housing status, or a housing area to be expanded with construction which will increase the housing density or the increase of strata housing building level," he said at an Aidilfitri Open House at his residence, here today.

He said a similar charge had been imposed in other states including Selangor in 2010, Perak (2012), Kelantan and Kedah (2015).

The charge will be based on the land location and usage which is 30 percent for International Zone area land, 15 percent (City Council and PBT council status area) and 10 percent (PBT district status area).

So far, he said, only three PBTs had International Zone area namely the Johor Bahru City Council, Johor Bahru Tengah City Council and Pasir Gudang City Council with the total land area of 28,468.37 acres.

"We will only impose the charge effective September 1, therefore the developers have about two months to make any application," he said.