Malaysian property tax 'may be extended'
By Steve Binge

Malaysian property tax 'may be extended'

There is the possibility that the Real Property Gains Tax (RPGT) levied by the Malaysian government could be extended when the 2013 budget is unveiled later this week.

Chor Chee Heung, housing and local government minister, told Free Malaysia Today that the RPGT is likely to be left in place, but that rates may not increase.

He pointed out that the number of speculators in the Malaysian real estate market has been relatively low since the levy was reintroduced in 2010, following a two and a half year period where it was not charged.

Mr Chor agreed a suggestion put forward by MP Azmin Ali, which is for the government to control the cost of construction materials and therefore bring building expenses down, has merit.

However, he stressed this could be difficult, as so many materials are imported from outside the country.

Earlier this month, chief executive officer of iProperty Group Shaun Di Gregorio told the Bernama news agency that many people want the government to curb speculation in Malaysian property to keep house prices down and are keen for tax breaks on mortgages to be offered to young professionals looking to purchase their first home.
 
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