It would seem redundant to be talking about the Budget’s Wish List after the Budget has been unveiled. But it is always enlightening to see whether the government has been listening to the stakeholders. It did but only one wish was fulfilled i.e. abolishing the RPGT on properties held for more than five years.
Koong Lin Loong Managing Partner, Reanda LLKG International
For the property market, we hope to see some bold measures because 140 subsectors are affected within the property industry. For example, although there will likely not be any increase in Real Property Gains Tax (RPGT), we would like to propose that RPGT exemption be extended to three private residential properties; and one commercial property a year. Also, we wish the government will reverse its decision on the 5% RPGT imposed on all Malaysians upon selling their property after the fifth year of ownership.
For the Home Ownership Campaign (HOC), we propose that it be extended for the entire 2022 because 2022 is an important year for post-pandemic revival. 2021 is practically wasted while 2022 is considered the first year of the Twelve Malaysia Plan (12MP).
We expect an expansionary budget so more projects will take off or continue. Many foreign workers have returned to their home country as construction sites can’t operate during the MCO. Hence, Malaysia faces a critical shortage of foreign workers now. The Budget should address this shortage by relaxing the procedures for hiring them.
KL See Executive Director, Metro Homes Realty Berhad
The government should extend the HOC incentive from the primary market to the secondary market so as to level the playing field. This way, the government is not just helping the developers but also individual residential owners.
We propose that the government abolishes the RPGT completely and replace it with Seller Stamp Duty that ranges from 1% for RM500,000 and under, to 2% flat for any amount above RM500K. This is because the Seller Stamp Duty tax structure is more effective and simple to implement as opposed to the RPGT.
Dato’ Joseph Lim
Founder, Insight Think Tank Sdn Bhd
Loan applications for the low and mid-priced markets below RM500K are increasing; this is the best time for bankers and the government to come up with more convenient and relaxed policies to facilitate more property transactions.
It would also help if the government enables more specific allowances/incentives for SMEs in the property industry, for example in digital marketing.
Michael Tan Property Investor & Speaker; Entrepreneur
HOC should be extended for another year as well as be extended to the secondary market while RPGT should be exempted completely for all years in 2022.
Agnes Wong Managing Partner, Syarikat Ong Group
Can the government treat rental income as non-taxable income for 2022 and even 2023?