PUTRAJAYA: The government, through the National Water Services Commission (SPAN), has reduced the contribution rate for public sewer connection imposed on developers, effective March 1.
Previously, the contribution rate was set in bulk at one per cent of the selling prices of homes.
“This move is expected to lower house sales prices and make it easier for low- and middle-income groups to own their own homes,” SPAN said in a statement today.
It said that for houses priced at RM80,000 or below, the contribution rate is RM1,000 per project.
For houses priced between RM80,000 and RM150,000, the contribution rate is 0.25 per cent of the selling price, it said.
For government projects, it said the payment has been adjusted to a fixed rate of RM900 per equivalent population, compared to the previous rate of one per cent of the contract cost per unit.
This is to ensure that changes in contract costs no longer affect the payment rate, it added.
Additionally, a special rate has been introduced for certain building categories. For a house of worship, the contribution rate is set at RM100 for all buildings constructed within a project.
For welfare and community buildings, the designated contribution rate is RM100 per building.
According to SPAN, although the government anticipates a 15 per cent drop in revenue collection, this amendment is expected to encourage the construction of more affordable housing.
Detailed information on the new rates can be found on SPAN’s official portal at www.span.gov.my.
