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RPGT should not be imposed on genuine owners, says PKR MP

KUALA LUMPUR: Owners who have kept their properties for more than five years should be exempted from the fixed 5% real property gains tax (RPGT) proposed under Budget 2010, the Dewan Rakyat was told.

MP for Gombak Azmin Ali (PKR) said these owners are generally genuine owners and not speculators. He pointed out that there were many villagers who have held on to inherited land for decades only to dispose of them much later.

“Today, if such villagers were to dispose of their land for the purpose of investing the profits in LUTH or Lembaga Urusan Tabung Haji to finance their haj pilgrimage, they would be subject to a 5% RPGT,” he told the House during the debate on the Budget 2010 speech at the policy stage on Nov 2.

According to him, the 5% RPGT was unfair as it would not only deter property speculators but also those who were genuine property investors and bona fide buyers and sellers. “I also propose that the RPGT be imposed only for transactions involving disposal of properties that are built after Jan 1, 2010,” added Azmin, who is also PKR vice-president.

Besides, he pointed out that a fixed 5% irrespective of the year of disposal was considered high for a recovering economy and such a move could paralyse the property market and have a negative impact on the Malaysia My Second Home programme.

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