Chua: No GST on maintenance and service fees if dept gives nod

The VIPs: Chua (centre) arriving at the seminar in Kuala Lumpur. With him are chairman of Estate Agent Practice committee board member Eric Lim (right) and assistant director-general of valuation (technical) Huan Cheng Kee.

KUALA LUMPUR: Maintenance fees and service fees for residential properties will be exempted from the Goods and Service Tax (GST) if the Customs Department gives its nod.

Deputy Finance Minister Datuk Chua Tee Yong said he would be discussing the matter with the department soon following concerns raised by the Board of Valuers, Appraisers and Estate Agents (Bovaea) and other related organisations.

“Currently, residents especially those living in apartments are charged a maintenance fee or service charge which is under the GST regime,” he said after launching a real estate law seminar yesterday.

He said that Bovaea and other organisations are of the view that the fee collected by the Joint Management Body or Management Corporation is for managing the property and not for profit and therefore should not be subjected to GST.

“They are requesting to be exempted as GST could result in higher fees or service charges.”

Chua also said that he would discuss with the department on the possibility of having the Unified Examination Certificate (UEC) fees exempted from GST as well.

 

“According to the exam guidelines, all fees for secondary, primary, tertiary and private schools should not be subjected to GST.

“The UEC, however, is a certificate issued by Dong Zong which is a non-governmental organisation and, therefore, GST is applicable,” he said.

On the falling global oil prices, he said it might result in a positive impact on the country’s deficit.

He explained that Malaysia relies on the Tapis Crude and not Brent Crude in determining oil prices, and the average pricing per barrel had met expectations so far.

“The average price per barrel from January to November has been at about US$100 (RM344), and this is what we had foreseen,” he said.

Chua said the Government, which was monitoring the oil prices, knew there could be positive impact although many quarters were focused on the negative side of the drop.

“Typically, when oil prices fall, many countries notice a growth in consumer sentiment.

“This may help our manufacturing industry and may even boost our exports,” he said, adding that the situation would be different if the price plunged to US$30 (RM103).