GEORGE TOWN: The state government should not be blamed for the increase in land premium charges as the rate is fixed by the Valuation and Property Services Department.

Chief Minister Lim Guan Eng was commenting on the statement by Penang Barisan Nasio- nal working committee deputy chairman Datuk Zainal Abidin Osman who had accused the state government of increasing the land premium rates resulting in a rapid rise in property prices in the state.

Zainal Abidin alleged the state government had hurriedly increased the land premium rates to cash in on the demand for property in the state.

He said when the premium was increased, developers were forced to increase the price of their houses.

Lim said the state government was merely following the rate set by the department, which is a body under the Federal Govern-ment.

“If he (Zainal) is not satisfied with the current rate, he should raise the matter with the department,” he said at a press conference here yester- day.

SOURCE: The Star