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Don’t impose GST on bricks, steel and cement, says Rehda

KUALA LUMPUR (April 5): The Real Estate Housing and Developers’ Association (Rehda) urged the government to exclude core construction materials such as bricks, steel and cement from the goods and services tax (GST) during the Malaysia Property Expo Klang Valley 2015 (Mapex-Klang Valley 2015) today.

“A house is a necessity to all of us and 6% on construction materials is a huge impact on the construction industry… The government can impose GST on expensive materials such as high-end windows, marbles and tiles. But don’t impose GST on basic construction materials [such as bricks, steel and cement] to build a house,” said Rehda past president Datuk Ng Seing Liong.

Ng said while residential units are GST exempted, end-buyers will still need to bear the GST on construction cost. Rehda is in discussions with the government to allow houses priced at RM500,000 and below to be zero rated, so that buyers need not be burdened by the GST on construction cost.

He also advised the public on the selling of commercial properties. “If you are not in business and you sell commercial or industrial [property], it is not [GST] taxable. But if you are holding more than two shop houses, then you have to charge GST to your buyers… We are telling the government to relax this part of the law.”

Ng added that owners who collect more than RM500,000 in rental per year will also need to register for GST.

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