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PETALING JAYA: The National Homebuyers Association (HBA) is not satisfied with the government's revised tax rate on profits from the sale of properties, while an expert on the subject says it This is a useless exercise.
HBA Secretary General Chang Kim Loong said the imposition of profits on the sale of properties beyond five years was bad news for Pakatan Harapan, noting that the previous government of Barisan Nasional n & # 39; He had not imposed such a tax.
At the presentation of the 2019 budget yesterday, Finance Minister Lim Guan Eng said the government is revising the tax rate of gains realized from the sale of properties after five years.
The government will impose a 5% real estate tax on all Malaysians and raise the tax from 5% to 10% for foreigners.
At present, this is a flat tax ranging from 30% for properties sold in the first year of purchase to 0% after five full years of ownership.
However, those who sell their properties below 200,000 RM do not need to pay RPGT.
Chang said, "We had asked the government not to change the PTRN rate for the first two properties and only increase the rate of PTR for the third property and the following.
"By applying an RPGT rate to people who have properties for more than five years or more, the government is effectively imposing an" inflation tax ", which will punish real investors in the long run."
He urged the government to reconsider this decision.
At the same time, Ernest Cheong, a chartered real estate expert for 40 years, said the government's revised tax rate on profits from the sale of real estate would make no difference in the current economic situation.
He said that most people had no profit selling their homes.
"In reality, the RPGT is academic. If a person buys a house around 2014 and sells it today, they risk losing money through the sale, "he told FMT.
Cheong asked how the government would collect taxes on property when the property market would be considered "dead".
He also asked if those who sold their properties before the five-year period would be subject to a 5% tax.
"Does this mean that they (the owners) are exempt from the PKE or that they have to pay? The minister must be clear on the tax on those who sell property in less than five years, "he said.
Penang-based real estate developer Jerry Chan said the new rates would not discourage people from selling their properties.
He said the 5% would not be a "break factor" in the real estate market.
"I think we can live with that (taxes). It's something that will not deter long-term investment, "he said, adding that developers understand the need for the government to raise revenue to pay the country's debt.
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