GEORGE TOWN (Oct 1): The International Real Estate Federation (FIABCI) urges the federal government to review the Real Property Gains Tax (RPGT) as a move to stimulate the secondary property market and reduce property overhang.
FIABCI Malaysia president Michael Geh said the primary and secondary property markets are on the path to recovery and positive sentiment is important to maintain the pace.
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"We hope that the government will relook at the RPGT which is deemed to be unpopular as perpetual RPGT is currently affecting those who are considering of upgrading their houses," he told Bernama when sharing FIABCI’s wish list for the upcoming 2020 Budget.
He said the current market-friendly policies by the Housing and Local Government Ministry and the Finance Ministry have stimulated the property market in the past six months.
"So now we wish for more market-stimulating policies during the 2020 Budget, so that the property market can pick up next year," he said.
During the tabling of the 2019 Budget last year, Finance Minister Lim Guan Eng said the government would impose a five percent RPGT on all Malaysians and raise the tax by five percent for foreigners to 10 percent for those who sold their properties, after the fifth year.
Lim is expected to table the 2020 Budget on Oct 11 in the parliament.
Geh also called for the government to expand the Malaysia My Second Home (MM2H) programme to offer it to foreign property buyers.
"Linking property purchase with MM2H is a more acceptable way of persuading others to buy Malaysian properties.
“MM2H should be continued along with its stringent checks to make sure we are accepting genuine people who wants to live here and contribute to the economy here," he said.
