Why Johor State License Revenue Collection Decreased?

Up until July 2021, the revenue from license collection in Johor is only half of 2020’s collection

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License revenue accounts for between 30-35% of non-tax revenue

Johor Housing and Local Government Committee chairman, Ayub Jamil, has elaborated in the Johor state assembly on why the license revenue saw a decrease – at least half from its collection in the year 2020.

“As of 31st July 2021, the total number of licenses registered in Johor State Local Authorities is 147,135 licenses.”

“License revenue accounts for between 30-35% of non-tax revenue.”

In 2020, the total revenue collection of Johor PBT licenses was RM64,029,472.91, while in the year 2021 until 31st of July 2021, it was only RM32,902,589.71.

“The decrease in license revenue collection in Johor State Local Authorities is due to the exemption of hawker license fees in 2020, and the exemption of hawker license fees and SME traders in 2021,” Ayub said.

“Apart from that, the local authority also does not impose any late penalty or compound to any traders who are late or fails to renew their license during this Movement Control Order (MCO) and VAT phase 1”, he further elaborated.

According to Ayub, the license revenue consists of several categories including business licenses, advertising licenses, market licenses, and hawker licenses. There are approximately 50 types of licenses used in Johor State Local Authorities.