Malaysia: abolition of property gains tax is timely
The abolition of the Real Estate Gains Tax (RPGT) on properties sold after five years is seen as a timely move that will help boost the Malaysian real estate market.
KGV International Property Consultants (M) Sdn Bhd director Samuel Tan said it was a long overdue measure as many see it as an unfair way to penalize long-term property owners on the job. ‘inflation.
âWith this abolition, we hope that homeowners will be motivated to move to a desired home without any tax penalties.
“It would be better if the RPGT rate was reduced accordingly for transactions less than five years after purchase to boost the real estate market, because there is hardly any gain anyway,” he told StarBizWeek.
PPC International chief executive Siders Sittampalam said the RPGT was initially imposed to curb speculators.
âThe purpose of the RPGT was to get rid of people returning properties because it distorts the market. As part of the 2020 budget, the RPGT was extended beyond five years, but this has become a drag on the market. “
As part of the 2022 budget, which was tabled on October 29, Finance Minister Zafrul Abdul Aziz said the government will no longer impose the RPGT on Malaysians, permanent residents and businesses when they dispose of their real estate assets. from the sixth year.
The government also announced that it would provide two billion ringgit ($ 480 million) of guarantees to on-demand workers seeking housing loans.
Observers say the policy will help the B40 group of people be better placed to apply for loans.
âThis will have a positive impact on the residential segment,â says Siders.
Meanwhile, CEO of real estate agency Rahim & Co International Sdn Bhd, Siva Shanker, said efforts should be made to ensure this policy is not misused.
âIt’s a good measure to have, but if you don’t know how to apply and manage it properly, it could be misused.
âThere are thousands of people who have money but maybe they are not reporting their income correctly just to show that they are not, so that they can qualify for the loan. But that will only deprive those who really deserve it. ”
THE STAR INFORMATION NETWORK (MALAYSIA) / ASIA