The Real Property Gains Tax (RPGT) should be zeroized (as it was in 2007) till the end of the year to help boost the already soft real estate market in the country, said the Malaysian Institute of Estate Agents (MIEA).
This will help create a conducive environment for greater secondary market activities and also to stimulate reinvestment in light of the economic downturn and the impact of the current COVID-19 pandemic, it said in a press statement today.
To help Malaysian property sellers, it also suggested that the collection of Sales and Services Tax (SST) for real estate transactions be placed in ‘abeyance’ until the end of the year to help sellers from having to incur additional costs.
For property buyers, it proposed that a transfer of 10% of funds from Account 1 of the Employees Provident Fund (EPF) into Account 2 to provide liquidity for the purchase of homes or assistance in the repayment of loans after the moratorium of six months declared by Bank Negara.
It added that MIEA had in previously proposed for Interest Only Loans for the purchase of properties to be introduced. “Perhaps this would be the right time for this to be considered especially after the six months moratorium as a longer-term measure for first-time house buyers,” it added.