Q.
How is development charge calculated based on the Development Charge Rules under Town and Country Planning Act, 1976?
A.
2015 D04 Tax had two questions on calculation of Development Charge under TCPA 1976.
2015 Q1 - development charge on change of use.
2015 Q4 - calculation of development charge - cases.
Therefore, it seems this topic has become important in the examination.
The State Authority is vested with the power on land matters. On the legislation of Town and Country Planning, the States enact their own subsidiary legislations for the same. Under these subsidiary legislations, there are detail 'Rules and Guidelines' for various implementations of the Act, or Enactment (West Msia) and Ordinances (East Msia). Similar for Town and Country Planning Act, 1976, on the matter of calculation of Development Charge - Caj Pemajuan, it is spelled out by individual State Rules.
Below are snapshots of the Warta from Kelantan (2015) and Selangor (2010) for understanding how Development Charge is calculated.
Overall, the concept is the increase of value from the original plan in the respective zoning for development be levied a percentage as Development Charge payable by the developer.
For example, original density is 200 residential houses, and now the developer proposes 300 houses, the value of the land would increase as more houses are built for sale. This increase is levied in percentage from 10% to 30% or even 100% as development charge.
Below is the Rules for Selangor:
