PETALING JAYA (Oct 31): The newly unveiled Budget 2022 is a timely budget that offers relief to the families and industries which were badly affected by the pandemic, with various one-off incentives on individual income tax would augur well as it helps to lighten the burdens of the rakyat collectively, said Datuk Seri Koe Peng Kang, president of International Real Estate Federation Malaysian chapter (FIABCI Malaysia)
“It was also heartening to see one of our wishes on the abolishment of RPGT from the fifth year onwards was tabled albeit taking effect only from the sixth year onwards. The secondary market contributes more than 80% of total residential property transactions and the removal of this tax would help spur the sub-sale economy and trigger more demands down the supply chain,” said Koe, commenting on recently announced Budget 2022 on Friday (Oct 29).
Fiabci Malaysia also lauded the government’s effort and focus on tackling climate change as the sustainability agenda has become a global agenda and with the government’s support in providing incentives for those who intend to embrace and adopt such practices are timely.
“It would be even better if such incentives are extended to the property development industry whereby tax relief and incentives are offered to property developers who are serious about driving this agenda across its developments and not merely just green-washing,” he furthered.
Koe added that the government could explore expanding the green incentives through the possibility of reducing developers’ costs which will translate to lower property prices and cost savings for property buyers.
“This can be achieved by reducing labour and compliance costs, reducing company income tax, and providing tax incentives for projects with ESG goals initiatives/green buildings or projects built with Industrialised Building Systems (IBS),” he said.
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