MPK seizes items from restaurant owner owing RM21,760 in taxes

In a recent operation by the Klang Municipal Council (MPK) to collect assessment arrears, the owner of a restaurant in Pandamaran, Klang had their furniture and appliances seized after failing to pay their assessment tax. The enforcement officers from the local council seized a chest freezer, a drinks chiller, and a food warmer station from the restaurant due to an outstanding sum of RM21,760 accumulated over eight years. Despite receiving multiple reminders, the owner had not made any payments.

According to Muhammad Azlan Abdul Malek, the deputy director of MPK’s Legal Department who led the operation, the council’s Finance Department had issued several reminders since 2015. In 2018, the owner had proposed a plan to repay the arrears through monthly payments, but those payments were never made. The annual assessment tax for the restaurant was RM2,250, and a final red notice was sent in June, which the owner failed to respond to.

According to Azlan, the moveable items seized can be claimed by the owner if the total amount is settled within seven days. If not, the items will be auctioned off. He further explained that the operation was carried out under Section 148 of the Local Government Act 1976 and involved 15 personnel, including deputy director Mohd Fairus Ali from MPK’s Finance Department and senior enforcement assistant Haslinda Abdul Rahman from the Enforcement Department.

As of June, there were 46,994 assessment tax defaulters in the municipality. In the first half of 2023, MPK sent out 1,093 red notices to ratepayers who had failed to make their payments. So far, a total of RM654,563 has been collected. The seizure of moveable items such as electronic goods and furniture is considered the last resort after multiple reminders and notices have been sent.

The process starts with two notices reminding the ratepayer to settle the payment before the deadline. If the payment is still not made after a week, a red notice is issued. MPK only seizes items that are worth more than the outstanding arrears to ensure that the amount obtained from the auction will cover the unpaid sum. Azlan emphasized that the council does not want to resort to extreme measures like seizure, but it is necessary when the notices are disregarded by the ratepayers.