Brunei's Local News - Brudirect.com

Bandar Seri Begawan - Commercial and residential buildings in the newly gazetted area of Bandar Seri Begawan (BSB) beginning next year will be levied 12 per cent Building Tax annually.

However, the official said the enforcement date will be announced by the Municipal Department early next year.

Bandar Seri Begawan was enlarged from 1,287 hectares to 10,036.24 hectares in August 2007 encompassing several areas and mukims which were not under the Building Tax jurisdiction.

This was elaborated by the Municipal Department in a series of roadshows pertaining to clarification and explanation about the amount of tax imposed on commercial and residential buildings in the BSB and the newly-gazetted area.

The tax on the commercial buildings will be at a

rate of 12 per cent of the total annual rental revenue while residential buildings or houses will have to pay 12 per cent of the total floor area in square metres (sqm),

According to the Municipal Department, for each sqm of the total surface area of the residential building inside the centre of the capital will be calculated at $2.20 per sqm whereas for buildings outside the BSB centre will be at $1.10 per sqm.

The Building Tax can be paid in two instalments in January and July. Those who fall under the Building Tax levy will enjoy certain facilities and benefits, including proper access roads, waste and sewage management and street lights provided by the Municipal Department and the Municipal Board, said Hjh Rashidah, an officer at the Municipal Department who was present at the press briefing.

However, she said people will get tax rebate should a building be vacant for a period of more than 30 days or if the building owner has existing facilities encompassing the services provided by the Municipal Department such as access roads or street lightings.

However, this provision applies to only those who seek the rebate and it is approved by the Municipal Department and the Municipal Board.

She reiterated that the full amount of the Building Tax, formerly known as Cukai Pintu, was actually 15 per cent but the Municipal Board has reduced it to 12 per cent tax looking at enforcement services and facilities provided.

The 12 per cent Building Tax revenue will be divided among the following services:

She said that the lessor or lessee of the buildings within the tax boundary should provide full and accurate information for further assessment, adding that they will assign officers to inspect the locations to ascertain it information provided.

"Should there be any discrepancies regarding the evaluation of buildings, the lessor or lessee has to write to the board and the department will reassess the building evaluation," said Hjh Rashidah.

The revenue from the taxes, according to her, can increase the country's income and be diversified to developMent projects in order to achieve a city status comparable to other cities in the world.

The roadshow also spelled out several development plans that are currently ongoing or in planning stages like the Bandar Seri Begawan Waterfront project and the proposed Tamu Gadong as the main highlights. -- Courtesy of The Brunei Times