KUALA LUMPUR: Many houseowners are taking to renovate their homes now in view of the implementation of the Goods and Services Tax (GST) from April 2015 onwards, said Grant Thornton Malaysia senior executive director Seah Siew Yun.
“This is because from April 2015 onwards, the contractor will a charge six per cent GST on top of the renovation cost. That can be quite a sum if houseowners are doing major renovation works,” she said after the firm’s presentation on the impact of the GST on local property sector.
Also present were Grant Thornton global leader for real estate and construction sectors Sian Sinclair and Grant Thornton senior executive director for GST Lorraine Parkin.
Sinclair noted all supplies of residential property and land to be used for residential development will be exempted from GST.
“So, property developers would have to absorb some of the ‘locked in’ GST costs as they would not be able to pass on for sale and purchase of residential units. The adverse impact would be brief and slight as the property market will find an equilibrium,” she said.
~ By OOI TEE CHING
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