Brunei's Local News - Brudirect.com

Bandar Seri Begawan - Following the expansion of areas under the jurisdiction of the Bandar Seri Begawan (BSB) Municipal Board from a total of 1,208.7 hectares to 10,036.24 hectares on August 1, 2007, owners of commercial buildings under the newly expanded area will soon have to start paying building tax when the BSB Municipal Board implements the building tax on commercial buildings next year.

Under the Municipal Board Act, chapter 576, the BSB Municipal Board has been mandated to collect the building tax. The percentage of building tax levied will be not more than 12 per cent, depending on the availability of eight facilities that are provided by His Majesty's Government namely; water services that comprises two per cent of the total levied tax, police presence (one per cent), fire and rescue presence (one per cent), provision of entrance roads (two per cent), provision of street lighting (two per cent), garbage collection services (one per cent), sewage system (two per cent) and cleaning services (one per cent).

Dyg Hjh Rasidah binti Hj Ghani, a Municipal Officer

and Head of Evaluation and Building Tax explained that, "Previously, the building tax has been implemented in the already existing areas of the BSB Municipal Board and next year, we are expected to implement the building tax to commercial buildings on the outskirts of Bandar Seri Begawan, which have come under the expanded areas of the BSB Municipal Board."

These expanded areas include the vicinities of Mukim Kianggeh, Mukim Gadong, Mukim Berakas 'A', Mukim Berakas Mukim Kota Batu and Mukim Kilanas.

Dyg Hjh Rashidah further explained that in order to provide more information on the building tax a roadshow will be organised to provide information to owners of commercial buildings. The first roadshow was held at the BSB Municipal Board's City Hall yesterday morning

She further highlighted that: "Survey forms have already been distributed to owners of commercial buildings in assessing the tax earlier this year. However, not all of the forms have been returned. We hope that members of the public, who have yet to return the survey, do so as soon as possible."

As an example, she explained that if the monthly rent of a unit is $500, then in order to calculate its yearly revenue that figure has to be multiplied by 12 (months), which would amount to $6,000. The total amount is then multiplied with the tax rate of 12 per cent (the maximum tax levied) to obtain the amount of tax to be paid. In this case, the figure amounts to $720 a year.

However, commercial building owners can also request to pay the tax in two payments namely in January and July.

Those who do not comply with the payment of the building tax will first be issued with a notice. The Municipal Board will issue three-reminder letters, as well as a final reminder, before the matter will be brought forward to the Attorney General's Chamber for further action, should these notifications elicit no response. Another briefing will be held today at the same venue. -- Courtesy of Borneo Bulletin