The government decision to put the proposed vacancy tax on the back burner comes as good news for developers and the housing industry as well, say property consultants and economists.
Rahim and Co International research director Sulaiman Saheh said the proposal by Housing and Local Government Minister Zuraida Kamaruddin lacked clarity in the first place.
“Although the intention was to prevent the residential overhang situation from worsening, the implications of implementing the tax amid the challenging period that we are in right now could have other ramifications, ” he said.
Sulaiman also said developers should be given “a lead-up period of one to two years from the date of the tax implementation to clear off existing overhang.”
