KUALA LUMPUR: The hike in the real property gains tax (RPGT) rate from 10 per cent to 15 per cent effective January next year could curb property speculation, says Housing and Local Government Minister Datuk Seri Chor Chee Heung.
Chor said the hike is part of moves by the government to control the rise in house prices by curbing speculative
“The government has raised the RPGT rate from 10 per cen t to 15 per cent on properties disposed of within two years of
“For properties disposed of after three to five years, the RPGT stays at 10 per cent while properties disposed of after five years are not subject to RPGT,” he said in reply to a question from Senator Datuk Mohammed Najeeb Abdullah on the impact of the RPGT hike.
Chor said the government does not plan to raise the RPGT again as the five percentage point hike is reasonable and its effectiveness at controlling speculative activities in the real property market can only be known next year.
“Raising the rate too high without sufficient notice could bring negative impacts on the property and housing industry,” he said.
Meanwhile, replying to Senator Abdul Shukor Mohd Sultan’s question on the steps taken to curb the hike in housing prices, Chor said the government currently does not control house prices as it believes they should be determined by market forces.
“However, in the 10th Malaysia Plan period, the government targets the construction of 161,000 affordable housing units to meet the demand from low-income earners.
“For middle-income earners, the government has launched the 1Malaysia People’s Housing Scheme (PR1MA),” he said. — Bernama