The government today proposed a review of the Real Property Gains Tax (RPTG) to curb speculation.
The government has proposed that for properties held and disposed within two years, the RPTG is 10 per cent for both companies and individuals. For properties held and disposed within a period exceeding two years and up to five years, the rate is five per cent for both.
If not controlled, speculative activities will put pressure on the price of real estate, Prime Minister Datuk Seri Najib Tun Razak said when tabling the 2012 Budget in Parliament, here today.
Najib, who is also the Finance Minister, noted that in the long run it would jeopardise the ability of the low and middle-income groups to buy houses.
“I am confident the revised RPGT rates are low and will not affect genuine owners and curb speculative activities,” he said.
News Source: Bernama
On the other hand, Government proposes to increase the limit of house prices under the My First Home Scheme from a maximum of RM220,000 to RM400,000 beginning January 2012.