Business

Thursday November 5, 2009

Government may rethink real property gains tax


KUALA LUMPUR: The imposition of the real property gains tax (RPGT) may be reconsidered once the Government receives feedback from all parties, including non-government organisations, says Deputy International Trade and Industry Minister Datuk Mukhriz Mahathir.

“We will keep monitoring to see if the measures have good effect or not. We will look at the feedback and if there is a need for us to do any adjustments, we will reconsider,” he told reporters yesterday after the seminar on The Fundamentals of Globalisation & Liberalisation – Its Impact to the Real Estate Industry.

Mukhriz also said the Transport Ministry would come up with a road map regarding the Government’s measures under the recently-reviewed National Automotive Policy (NAP) that introduced an annual comprehensive inspection as requirement for road tax renewal for vehicles aged 15 years or older.

“People need not worry about this new policy as it is for their own good and safety.

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“Plus, it will not start on Jan 1 next year and the timeframe to impose the policy will be up to the Transport Ministry after collecting all the necessary feedback,” he said.

Under the reviewed NAP, he said the ministry was encouraging Proton Holdings Bhd to enhance competitiveness through strategic partnerships and it was up to the national car manufacturer to make the decision. “For this matter, we are encouraging it to find a partner that can give it technical expertise,” he said.

Meanwhile, Raine & Horne International Zaki and Partners managing partner Datuk Zaki Said said the imposition of the RPGT next year would make investors feel uncomfortable with the local property market as the policy was inconsistent.

“Nevertheless, we think this measure is to curb speculative buying and will not give much impact to the overall property market performance,” he said, adding that the RPGT was also one way for the people to participate in building up the economy as it would help the Government gain more revenue.

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