Budget 2022: Rehda Says RPGT Removal Will Boost Real Estate Market | Malaysia

Rehda Chairman Datuk Soam Heng Choon said Rehda appreciated the government heeded his proposal to abolish the RPGT on homes surrendered from the sixth year by Malaysians and permanent residents of the country. Photo by Miera Zulyana

KUALA LUMPUR, October 30 – The removal of the Real Estate Gains Tax (RPGT) will help boost the Malaysian real estate market and ultimately translate into a positive multiplier effect on the economy, according to the Malaysian Association of Property Developers and real estate (Rehda).

Its chairman, Datuk Soam Heng Choon, said Rehda appreciated that the government had heeded its proposal to abolish the RPGT on homes ceded from the sixth year by Malaysians and permanent residents of the country.

“The RPGT was originally introduced to dampen speculation when the real estate market was buoyant, but in the current soft market conditions we welcome the government’s decision to remove it,” he said in a statement.

Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz, when tabling the 2020 budget in the Dewan Rakyat yesterday, said the government will no longer impose the RPGT for property transfers by citizens, permanent residents and other businesses from the sixth year.

He also said the government will continue to implement housing projects, especially for low-income people, with a total allocation of RM 1.5 billion.

Starting next year, the government will also provide a RM 2 billion guarantee to banks through the Housing Credit Guarantee Program to enable small-scale industry workers, micro-entrepreneurs and farmers to gain access. funding, said Tengku Zafrul.

Soam said the allocation in Budget 2022 will further encourage the group to buy a home, as they now have easier access to home finance.

“In conclusion, while we appreciate the efforts and consideration taken by the government to prepare a comprehensive and balanced 2022 budget, we were in fact hoping for further positive steps for a faster recovery of the real estate market,” he said. declared.

Meanwhile, National House Buyers Association (HBA) Honorary Secretary General Datuk Chang Kim Loong said the allocation in the 2022 budget to build comfortable and quality housing for the low-income segment is a noble government aspiration.

“This will ensure that every rakyat, including the low-income segment, has access to comfortable and quality housing.

“HBA hopes that proper planning, allocation, distribution and execution are done to ensure that these affordable properties are built for the target groups,” he said, adding that the home loan guarantee program should be limited to first-time home buyers and only for affordable properties. Bernama

Penny D. Jackson