Malaysia’s Finance Minister, Lim Guan Eng said on Monday that property developers should channel savings gained from the SST waiver on construction services or risk losing the tax exemption in the future.
This is part of the government’s effort to reduce residential property prices in the country to give way for the rakyat to finally own a home, especially for first-home buyers. Home affordability has been an issue for years now and the government together with other agencies have been pushing for lower property price as well as easier home loan application.
As reported by The Edge, Guan Eng noted that rejected home loan applications could be as high as 70%, according to unofficial calculations, despite official data that suggest only 20 – 30%.
Rehda Malaysia president, Datuk Soam Heng Choon also expressed his hope that developers would get in line with the effort to reduce home prices by passing the savings to buyers, on top of other rebates and promotions.
If the tax exemption does not appear to serve its purpose, the government will find other ways to achieve home affordability, expressed Guan Eng at the Real Estate and Housing Developers Association (Rehda) Institute CEO Series 2018 (Annual Property Developers Conference) held on Monday.
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