Last week the Selangor state government confirmed that assessment taxes would rise by 25% starting January 2025, with the tax hike expected to raise revenue for local councils by RM355 million. Selangor Local Government and Tourism Committee chairperson Ng Suee Lim stated that “These funds will be utilized to enhance infrastructure and public services across districts,”

While we agree that infrastructure and public services in Selangor require much improvement, we also share the skepticism of many Selangor taxpayers whether the money will be spent in a prudent and responsible manner.

One big reason for this skepticism is that funds from this tax hike will be administered by the unelected local councils. Malaysians originally had the power to elect their local government (that is, mayors, city councillors). This power was taken away from the rakyat after 1963. Despite past calls to reinstate local government elections by the parties currently in Pakatan Harapan (most recently by DAP’s federal territory chairman Tan Kok Wai last year) neither the Selangor state government or the federal government have made any progress in this matter, despite both governments being led by Pakatan Harapan.

We Selangoreans are subject to a “taxation without representation”! The RM355 million windfall will not be adminstered by people who were judged competent or trustworthy by the Selangor electorate, but rather a collection of rejected election candidates and buddies of political party chiefs appointed by Pakatan Harapan and Barisan Nasional, without any consultation with the people who had to pay for the increased tax rates. Given the tendency for public money to disappear into cronies’ pockets in Malaysia, Selangor ratepayers are right to be suspicious that they will see any benefits from this tax hike.

We therefore make these three demands to the Selangor state government:

1) We demand tangible progress towards local government elections in Selangor. With this massive 25% rate hike, local councils are taking a much larger portion of Selangoreans’ incomes. We deserve a bigger say on where these funds go.

2) We demand clarity on what projects these funds will be spent for, and a commitment to transparency. In particular, that the projects will be awarded based on an open tender basis, not just handed to cronies of political party leaders.

3) We demand that the Selangor state government raise taxes on the wealthy, rather than burdening the ordinary people through broad tax hikes. We acknowledge there are some exemptions to the assessment taxes to the very poorest. Nevertheless this rate hike will still burden many Selangorean families who are struggling to get by. Selangor has a serious inequality problem, and many ultra-wealthy residents. The state government should be targeting the rich, rather than raising taxes on the poor and middle class.

Prof. Darren Ong
Treasurer
Parti Sosialis Malaysia (Selangor)