Property prices are not expected to tumble, despite the government’s decision to exclude building materials from the list of items to be taxed under the new consumption levy regime.
The government had scrapped the unpopular Goods and Services Tax (GST) which had taxed materials used in the construction sector. But the GST replacement, the Sales and Services Tax (SST), will exclude basic building materials including bricks, cement and sand from its taxed items.
Housing and Local Government Deputy Minister Datuk Raja Kamarul Bahrin Shah Raja Ahmad (picture) said any house price drop will only happen if stakeholders collaborate with the government.
“We cannot expect things to just work out immediately. The government has done its part by exempting some construction materials from SST, but other parties including the state governments may try to benefit from the tax reduction by raising prices somewhere else.
Media Title: The Malaysian Reserve
Date: 14 Aug 2018