RPGT removal is good for the property market? After 6 years yeah.
Yes, RPGT is needed as it serve a purpose
I am someone who believes that Real Property Gains Tax (RPGT) is something beneficial for the property market. I would not want someone to come in and do excessive speculation and caused the property price to go up too fast and then when it collapses, affect everyone who owns a property.
However, it should not be forever (no matter when I sell my property)
However, I cannot accept that there is a 5% RPGT when someone sells his / her property even if the property has been owned for over 5 years! Just do not do all these because the GST was foolishly abolished okay… Bring the GST back and if necessary, start from 3 or 4%. Can definitely slowly move it up like how many other countries have been doing. Relying on SST is NOT a good decision when it’s proven that GST is a superior option even if not perfect.
So, now we have a decision on RPGT once someone has held the property for 6 years.
Article in malaymail.com Malaysia Real Estate and Housing Developers’ Association (Rehda) says that the removal of the Real Property Gains Tax (RPGT) will help invigorate the Malaysian property market and eventually translate into a positive multiplier effect on the economy.
Its president, Datuk Soam Heng Choon said, “The RPGT was initially introduced to curb speculation when the property market was buoyant but under the current soft market conditions, we welcome the government’s move for the removal.”
Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz, when tabling Budget 2020 in the Dewan Rakyat yesterday, said the government will no longer impose the RPGT for property disposals by individual citizens, permanent residents and other companies starting from the sixth year onwards. Please do read the full article here: Article in malaymail.com
Yes, now I will be happier when I sell my next property
The next property I intend to sell is over 6 years, so now I can save over RM20,000 if I successfully sell it. Definitely a wise decision and a good one because RPGT is NOT supposed to be a source of income. It is supposed to deter the property market from too many speculative activities.
Yes, now everyone can visit property sales galleries again. Please keep asking a lot of questions before ever buying one okay. Happy deciding.
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