Budget 2014: Wide support for revised RPGT


  • Nation
  • Sunday, 27 Oct 2013

PETALING JAYA: The increase in the Real Property Gains Tax (RPGT) to discourage speculative buying has come in for wide support, and not just among people looking to own homes.

Fomca secretary-general Datuk Paul Selvaraj said he backed the Budget 2014 proposal of almost doubling the RPGT to 30% as it was essential to curb speculation.


“We feel the Government did listen to consumers, and owning a house has now become a higher possibility,” he said.

“However, the hike in RPGT must be accompanied by an increase in affordable housing projects.”

The RPGT is imposed on the profit made on properties sold off within a set period of time, with a rate of 30% within three years followed by 20% and 15% in the fourth and fifth year respectively. No tax is imposed if a property is sold after six years.

Centre for Public Policy Studies chairman Tan Sri Ramon Navaratnam said the RPGT was a good way to dampen speculation and even prevent a possible property bubble.

On the impact it might have on ordinary people who are not speculators but wish to sell their property within five years, Ramon said: “It is not even a reasonable proposition. For most people, buying property is one of the biggest life decisions.

“So, if one is planning to rid oneself of a property in under six years, one must either be a really bad investor or already has speculative motives.”

MCA president Datuk Seri Dr Chua Soi Lek hoped that increasing the RPGT would dampen property speculation, but said the Government had to build more affordable houses in the long run.

“Houses with grossly inflated prices are beyond the reach of many Malaysians,” he added.

In JOHOR BARU, first-time homebuyers hope that increasing the RPGT would improve their chances of owning a property.

Operations manager Sean Cheng, 26, welcomed the move but said the Government should think of more ways to control property prices because “the tax will be quite pointless if the developers increase the price of houses”.

Businessman S. Jason Raj, 35, suggested raising the RPGT to at least 50% for foreign buyers.

Executive assistant Natasha Farhana Rohaizat, 24, agreed with the increase in the RPGT, saying: “I feel that it is the speculators who buy and sell property that is making the prices of houses constantly go up.”

Related stories:

Higher tax rates may not stop house prices from going up

Chua: Tax reduction will help lower-income group

Consumers need not worry about price hikes on sugary products for now

Two Indian chambers laud Budget 2014 as the way forward

Public to be informed on how GST will work

Too much sugar can affect your libido, quips PM

 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Budget 2014 , Parliament , Finance Ministry

   

Next In Nation

Majority of MPs have received two doses of a Covid-19 vaccine, says Speaker
Empty syringe issue: Police urge recipients to lodge reports
S'gor Health Dept ramping up preparations in hospitals to face surge in Covid-19 cases
Three MPs among Covid-19 cases detected in Parliament ahead of special sitting
Muhyiddin: NRP's success needs support from all parties
Drive-through durian: Kota Baru goldsmith gives away 1.2 tonnes of king of fruits
No changes to NRP thresholds for now, says Muhyiddin
Covid-19: Three MPs test positive, four more close contacts, says report
Ismail Sabri: 49 premises closed for breaching Covid-19 SOPs
Covid-19: Nine localities in Perak, Pahang, Kedah, Sabah under EMCO from July 26, says Ismail Sabri

Stories You'll Enjoy


Vouchers