10 July 2014

Rehda: Make housing properties below RM400,000 a zero-rated supply

  10 July 2014


KUALA LUMPUR: The government is encouraged to apply the zero-rated supply of Goods and Services Tax (GST) relief order on all affordable housing properties priced below RM400,000.

Its patron, Datuk Ng Seing Liong, said as residential property was currently considered an exempt-rated supply, the developers would be unabled to claim full input tax credits.
“It is better that it is made zero-rated (rather than exempt-rated) so that we developers do not have to pass back the burden of the costs to the consumers,” he said at the National GST Conference on Thursday.

The conference is jointly jointly organised by Malaysia News Agency (Bernama) and Tax Advisory and Management Services Sdn Bhd (TAMS).

Ng was the speaker for the second session of the two-day conference which ends Friday, entitled ‘Impact of GST on Property-Related Industries’.

The session was moderated by Bernama General Manager, Datuk Yong Soo Heong.

He said this step would help developers avoid increasing the prices of the properties that were predicted to happen once the GST was implemented from April 1, 2015.

“The increase will be one to two per cent or the most 3%,” he said.

Ng said 55% of property development costs were classified as construction costs which included construction components such as cement, bricks and concrete.

“A relief order will allow target groups for affordable housing to purchase properties without extra cost imposed on them even after the implementation of GST.

The GST will be implemented at six per cent to replace the Sales Tax and Service Tax.

Prime Minister Datuk Seri Najib Tun Razak, who is also the Finance Minister, announced the implementation of the GST when tabling the 2014 Budget.

~ By BERNAMA

logoblog

Thanks for reading Rehda: Make housing properties below RM400,000 a zero-rated supply

Previous
« Prev Post

No comments:

Post a Comment