PETALING JAYA: Real Estate And Housing Developers’ Association Malaysia (Rehda) is urging the government to waive goods and services tax (GST) on construction material for development of affordable housing priced at RM500,000 and below.
The proposal was made the first time by the association since GST implementation on April 1, 2015.
President Datuk Seri FD Iskandar said while Rehda supports the introduction of GST to make taxation more comprehensive, efficient, transparent and business friendly, the imposition of GST however has resulted in increased input prices.
He said as residential properties are categorised as an exempt supply, the disallowance of input tax credit has added on to the cost of development.
“For affordable housing, please waive (the GST). This can seriously help (first time home buyers).
“You will have more developers coming forward to build affordable houses. We hope the government to please consider this,” he told reporters at a luncheon on REHDA’s Budget 2018 Wishlist here today.
Besides that, FD Iskandar said Rehda is also proposing a Home Ownership Assistance Programme (HOAP) to the government aimed to address the affordability issue faced by the first time buyers.
He said under the programme, developers will include the interest of the housing loan disbursed during the construction period.
He said the main objective of the proposal is to assist buyers at the early stage of purchase and at the same time ease the burden of house buyers having to service both their house rental and the loan interest during the construction period.
Rehda has proposed that HOAP be specifically targeted for first time/only home owner and includes those who have sold their previous homes to upgrade and/or relocate.
This include for house priced RM500,000 and below, house price includes interest on mortgage during the construction period, property under construction, household income RM10,000 ad below and is not applicable to cash buyer.
Among others in the wishlist include issues of facilitating homeownership through Employees Provident Fund and MyDeposit Scheme, stamp duty exemption, special-end financing scheme, Solicitors’ Remuneration (Amendement) Order 2017, increase affordable housing supply, ease in cost of doing business, RM1 million threshold prices for the purchase of residential by foreigners and revision of the Bumiputra quota policy.