RPGT will be implemented, says Husni

PUTRAJAYA: The government will implement the real property gains tax (RPGT) as scheduled on Jan 1, 2010, said Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

"No... No, (there will be no review), its implementation will go ahead," he told reporters when asked on reports that the RPGT proposal may be reviewed.

In the 2010 Budget announced recently, the government suggested a fixed 5% tax on the gains made from property disposals beginning January next year.

According to Husni, the government has yet to see any real effect on the property market following the RPGT announcement.

He said the recent drop in share prices on Bursa Malaysia, including housing related counters, was not caused by the re-introduction of the RPGT but was led by Wall Street following unimpressive corporate results in the US.

The RPGT will be imposed on the gains from the sale of property irrespective of the holding period and category of the owner.

Following the RPGT announcement, there were concerns that it would have a negative impact on the property market.

Gains from the disposal of property are subject to tax under the Real Property Gains Tax 1976 to curb speculative activities. However, the RPGT was suspended in 2007 to boost the property sector. - Bernama

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