Reports By MARTIN CARVALHO, HEMANANTHANI SIVANANDAM and RAHIMY RAHIM
THE government should abolish the real property gains tax (RPGT) imposed on properties disposed of after a five-year period, says Datuk Seri Dr Wee Ka Siong.
The Ayer Hitam MP said property owners did not have any issue if the RPGT was imposed within the period to curb speculative activities.
“But if it is imposed after five years, then it is not reasonable, ” he said at the Parliament lobby.
The MCA president had raised the RPGT issue in Parliament’s Special Chambers seeking clarification over the tax yesterday.
The government announced an RPGT of between 30% and 5% under Budget 2019, depending on the time when the property is disposed of.
The RPGT imposed on individual Malaysians is 5% if the property is sold after the fifth year.
Under Budget 2020, the government agreed to enhance the RPGT by setting the market value on Jan 1,2013 as the property acquisition price for properties acquired prior to Jan 1,2013, compared to the previous base year of Jan 1,2000.
Dr Wee said under the previous administration, the RPGT was imposed only on property that was disposed of within a five-year period to check speculation.
“Many developers, house buyers and the general public hope RPGT is focused on the first five years as this is deemed speculative.
“Abolishing RPGT on property disposed of after five years would help stimulate the property sector, ” he added.
Deputy Finance Minister Datuk Amiruddin Hamzah said there was no immediate plan to abolish the RPGT as it had not reached the one-year implementation period.
He said as of last month, the government had collected RM81.5mil in RPGT imposed on properties disposed of after the five-year period involving 8,554 transactions.