THE increase in the Real Property Gains Tax (RPGT) to 5% from 0% on Malaysian individuals for the disposal of properties after the fifth year could subdue the local property market further.
PPC International managing director Datuk Siders Sittampalam said the measure, which was tabled at Budget 2019 yesterday, would affect the investors’ market.
“Given the sluggish property market, the move to increase the RPGT rate will discourage the investor market. This will result in fewer purchases and won’t improve the overhang situation at the moment,” he said.
The RPGT tax increase, however, exempted low cost, low-medium cost and affordable houses with prices below RM200,000.
The government had also announced that the stamp duty on the transfer of property valued at more than RM1mil would increase from 3% to 4%.