17 November 2014

‘Rise in house prices after GST temporary’

  17 November 2014

ALOR GAJAH: Any increase in house prices upon implementation of the Goods and Services Tax (GST) in April next year is just temporary, as a number of measures are already in place to curtail the rise.

Deputy Finance Minister Datuk Ahmad Maslan said among the measures were increasing the real property gains tax to 30 per cent from 15 per cent, enhancing house prices to RM1 million from RM500,000 for foreigners, and barring developers from undertaking projects based on the Developer Interest-Bearing Scheme.

He told the media this after officiating at the closing of a GST information session and a briefing on current issues at the Masjid Tanah parliamentary constituency, here, yesterday.

Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan said recently that houses prices could increase by three per cent after the GST implementation, based on a study by the Real Estate Housing Developers Association of Malaysia.

Ahmad, however, said the figure could be just one to two per cent based on the calculation of the Finance Ministry and the Customs Department.

Meanwhile, he said he would propose to the government to reduce the RON 95 petrol price if global oil prices fell to between US$70 and US$75 (RM231 and RM250) a barrel.

He said a reduction could be undertaken as it would have passed the subsidy threshold of the government.

The price of Brent crude oil is currently at US$79.41 a barrel.

~ By BERNAMA

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