PETALING JAYA (Oct 29): The Budget 2022 announcement made by Finance Minister Datuk Seri Tengku Zafrul Aziz fell below expectations for the property sector, as more incentive and help were expected to be announced, said RHB Research Institute senior analyst Loong Kok Wen (pictured).
“Over the past two weeks, we observed that many property stocks actually rallied, so we would have expected something really significant looking at the share price performance. The one-off special tax for high income companies (Cukai Makmur) is also a killer to a lot of companies and not just property development companies because the RM100 million threshold is so low,” Loong told EdgeProp.my.
The proposed Cukai Makmur plans to introduce a special tax on a one-off basis to high-income companies. Companies with taxable income up to RM100 million will first be subjected to income tax at the rate of 24% and the rest will be subjected to income tax at the rate of 33% for 2022.
“With this tax announcement, we may see that developers will not have any incentive to announce their sales target growth etc. I think come Monday, we will see some material correction among the property stocks,” Loong added.
Meanwhile, she also highlighted that the proposed waiver of the real property gains tax (RPGT) on property owners who sell their properties after the sixth year is a good step but may not be enough to stimulate the property market as a whole.
“The government may likely announce the extension of the Home Ownership Campaign come December, hopefully they do,” said Loong.
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