The Johor Baru Tengah Municipal Council (MPJBT) expects to receive tax revenues of at least RM50 million per year from the Forest City upon its completion.
Johor Menteri Besar Mohamed Khaled Nordin said that the revenues would derive from quit rent or property tax.
“Johor has no oil (industry) but when we have such development, it can bring additional revenue to the state every year that can be channeled back to the people,” he said.
He said through the MPJBT’s collection, the state government could provide various facilities, including halls, recreational parks, and shop lots for traders, besides developing some areas.
At the same time, the revenues collected could help the state government save funds for the construction of such facilities which could then be spent on other pressing needs, he added.
Forest City is a futuristic smart city project built on four man-made islands spanning over 3,424 acres (1,385.6 hectares).
Costing RM100 billion, it is expected to be completed within 20 years and will have a range of facilities, including housing units, offices, and shopping malls. –Bernama