Land Assessment Tax for PUB's Waterworks in Johor

Debated in Parliament on 18 Aug 2015.

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The debate concerns a land assessment tax notice from the Kota Tinggi District Council to PUB's Johor River Waterworks, which would more than double the tax rate and apply a category created solely for PUB.
Minister Shanmugam stated that the 1962 Water Agreement governs PUB's obligations and does not require PUB to pay this land assessment tax, and that Singapore has raised concerns through diplomatic channels with Malaysia.
Singapore has engaged the Malaysian federal government, including through Third Person Notes and direct talks between ministers and prime ministers, seeking resolution in line with the Separation Agreement guaranteeing Johor's compliance with the 1962 Water Agreement.

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Sitoh Yih Pin

Mr Sitoh Yih Pin asked the Minister for Foreign Affairs (a) what is the status of the land assessment tax applicable to PUB's waterworks in Johor; and (b) whether there have been any recent developments.

The Minister for Foreign Affairs (Mr K Shanmugam)

Mdm Speaker, as the House is aware, the Public Utilities Board (PUB) owns the Johor River Waterworks in the Kota Tinggi District of Johor. The Waterworks extracts and treats water from the Johor River. This is done in accordance with the 1962 Water Agreement.

In late 2014, the Kota Tinggi District Council issued a Notice seeking to double the rate of land assessment tax imposed on the Waterworks. The revised rate was more than double that of the next highest rate in the entire Kota Tinggi District. The Waterworks' assessed property value was also increased. The new rate was applied to a category which was created solely for PUB.

PUB's operations in Johor are governed by the 1962 Water Agreement. That Agreement governs what PUB has to pay. PUB is not obliged to pay the land assessment tax which has been sought to be imposed. There is some additional background on Johor authorities imposing such taxes in the past.

For present purposes, I do not propose to go into what had happened in the past. In respect of the latest tax assessments, we have registered our concerns. My Ministry has done so with the Malaysian Ministry of Foreign Affairs through two Third Person Notes (TPNs). PUB has got in touch with the Kota Tinggi District Council on the same. I have also raised this issue directly with my Malaysian counterpart, Foreign Minister Anifah Aman, twice, in April 2015 and on 4 August 2015. Prime Minister Lee Hsien Loong has also spoken directly to Prime Minister Najib Razak in May 2015.

Malaysia is aware that the issue of PUB's rights under the 1962 Water Agreement is critical and sensitive for us. The Malaysian federal government has guaranteed in the Separation Agreement that Johor would abide by the 1962 Water Agreement and, as I have said earlier, the Agreement does not require the payment of this land tax. We have requested the Malaysian federal government to address this issue. The federal government

Page: 12

has indicated that it would work with the Johor state government to address our concerns.

Summary written by AI (learn more)

The debate concerns a land assessment tax notice from the Kota Tinggi District Council to PUB's Johor River Waterworks, which would more than double the tax rate and apply a category created solely for PUB.
Minister Shanmugam stated that the 1962 Water Agreement governs PUB's obligations and does not require PUB to pay this land assessment tax, and that Singapore has raised concerns through diplomatic channels with Malaysia.
Singapore has engaged the Malaysian federal government, including through Third Person Notes and direct talks between ministers and prime ministers, seeking resolution in line with the Separation Agreement guaranteeing Johor's compliance with the 1962 Water Agreement.

Questions identified by AI (learn more)

Land Assessment Tax for PUB's Waterworks in Johor | PAPERCUTS

Land Assessment Tax for PUB's Waterworks in Johor

Debated in Parliament on 18 Aug 2015.

Summary written by AI (learn more)

The debate concerns a land assessment tax notice from the Kota Tinggi District Council to PUB's Johor River Waterworks, which would more than double the tax rate and apply a category created solely for PUB.
Minister Shanmugam stated that the 1962 Water Agreement governs PUB's obligations and does not require PUB to pay this land assessment tax, and that Singapore has raised concerns through diplomatic channels with Malaysia.
Singapore has engaged the Malaysian federal government, including through Third Person Notes and direct talks between ministers and prime ministers, seeking resolution in line with the Separation Agreement guaranteeing Johor's compliance with the 1962 Water Agreement.

Questions identified by AI (learn more)

Full Transcript

Sitoh Yih Pin

The Minister for Foreign Affairs (Mr K Shanmugam)

Page: 12

has indicated that it would work with the Johor state government to address our concerns.

Summary written by AI (learn more)

The debate concerns a land assessment tax notice from the Kota Tinggi District Council to PUB's Johor River Waterworks, which would more than double the tax rate and apply a category created solely for PUB.
Minister Shanmugam stated that the 1962 Water Agreement governs PUB's obligations and does not require PUB to pay this land assessment tax, and that Singapore has raised concerns through diplomatic channels with Malaysia.
Singapore has engaged the Malaysian federal government, including through Third Person Notes and direct talks between ministers and prime ministers, seeking resolution in line with the Separation Agreement guaranteeing Johor's compliance with the 1962 Water Agreement.

Questions identified by AI (learn more)

Land Assessment Tax for PUB's Waterworks in Johor

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Full Transcript

Sitoh Yih Pin

The Minister for Foreign Affairs (Mr K Shanmugam)

Summary

Questions Identified

Land Assessment Tax for PUB's Waterworks in Johor

Summary

Questions Identified

Full Transcript

Sitoh Yih Pin

The Minister for Foreign Affairs (Mr K Shanmugam)

Summary

Questions Identified