Rehda expects 15-20pc increase in RPGT
The Real Estate and Housing Developers' Association Malaysia (Rehda) expects the government to increase the real property gains tax (RPGT) by 15-20 per cent in the 2014 Budget to be tabled on October 25.
Its chairman of finance and investment committee, Datuk Ng Seing Liong, said buyers should not worry about the increase in RGPT as it will only affect buyers who disposed of their properties within five years after their purchase.
"At least when buyers buy property, they must hold it for five years before they let it go," he told a media briefing today.
According to news reports, the government was considering an increase in the RPGT to curb excessive speculation which has led to the increase in the prices of the houses.
Minister of Urban Well-being, Housing and Local Government, Datuk Abdul Rahman Dahlan, had said the government was studying the possibility of increasing the RPGT to stabilise the prices of houses in the country.
He, however, did not said whether the measure would be included in the 2014 Budget.
Industry players had said the present RPGT rate was too low to curb speculation, and the tax should be revised upwards on properties sold within three years (rather than two years) and that the government should also target taxpayers who had made multiple sales and purchases over a certain period.-- Bernama