Associations urge govt to forestall property gains tax

REAL-ESTATE and Housing Developers Association (Rehda) along with two other associations, have petitioned the government to forestall the implementation of Real Property Gains Tax (RPGT) come January 1 2010.

The RPGT will return next year at a fixed 5 per cent after it was scrapped in 2007, following the 2010 Budget announcement on October 23.

Rehda patron Datuk Eddy Chen told reporters yesterday that three associations, Rehda, the House Buyers Association and Associated Chinese Chamber of Commerce and Industry, sent a memorandum to the government last week, as a last ditch effort to stop the implementation of RPGT next year.

He was speaking at the "Conversation with Industry Leaders - Expectations and Perceptions of 2010 Outlook" forum yesterday, held during the two day 14th Malaysian Capital Market Summit 2009, organised by the Asian Strategy & Leadership Institute.
Chen said inconsistencies in policy making, such as in the case of the RPGT, would drive foreign investors away.

"For example, RPGT was abolished some two years ago, and developments became attractive to foreigners, now that the building is completed, we are slapped with the 5 per cent RPGT," he said.

Rehda is expecting flat overall growth for the real estate sector going forward, as certain segments of the markets flourish, while other suffer.

Chen said, while buyers who are owner-occupiers are doing well, investment type properties are facing problems.

By Business Times (by Presenna Nambiar)