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November 06, 2009 21:45 PM
Real Property Gains Tax On As Planned, Says Husni
PUTRAJAYA, Nov 6 (Bernama) --Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the government is going ahead with its plan to implement the real property gains tax (RPGT) as scheduled on Jan 1, 2010.
"No... No, (there will be no review), its implementation will go ahead," he told reporters here when asked on reports that the RPGT proposal was slowing down the property market.
In the 2010 Budget announced recently, the government suggested a fixed five per cent tax on the gains made from property disposals beginning January next year.
According to Husni, the government has yet to see any real effect on the property market following the RPGT announcement.
He said the recent drop in share prices on Bursa Malaysia, including housing related counters, was not caused by the re-introduction of the RPGT.
The local market sentiment was influenced by the share price drop in the United States following unimpressive corporate results, he added.
Earlier, the minister said in a statement that the fixed five per cent tax to be imposed on the gains from the sale of property is irrespective of the holding period and category of the owner.
Following the RPGT announcement, several parties have voiced concerns that it would have an unfavourable impact on the property market.
A property website, Thinkproperty.my, recently carried out a survey which indicated that market confidence was affected.
The survey sought participants' opinion on the outlook of the local property market over the next 12 months.
Last month, the Property Outlook Index rose from 49 per cent at the start of the month to an all-time high of 68 per cent on the eve of the RPGT announcement.
After the announcement, the index dropped to 56 per cent at the month-end.
Gains from the disposal of property are subject to tax under the Real Property Gains Tax 1976 to curb speculative activities. However, the RPGT was exempted in 2007 to help the property sector.
-- BERNAMA
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