We’re almost halfway through August and that can only mean one thing for us Malaysians: the dreaded services tax will return after a three-month tax holiday.
Business has been booming as a lot of people have seized the opportunity to go shopping on things they’ve always wanted, especially cars. So, it’s safe to say that no one actually looks forward to when the Sales and Service Tax (SST) comes into effect this September.
But a recent statement from the Deputy Housing and Local Government Minister Senator Datuk Raja Kamarul Bahrin Shah Raja Ahmad on housing prices may change your mind.
Raja Kamarul said that basic construction materials such as bricks, cement and sand will not be taxed under the upcoming SST, so this means that housing prices may be slightly cheaper.
“House prices may drop roughly between five to 10 per cent
, based on the housing category as the building materials have been exempted from tax,” Raja Kamarul told the New Straits Times
The minister also noted that housing prices were also set based on the price of the land.
“As land falls under the respective state governments, we cannot make a decision on that. Therefore, we are hoping that state governments will give their cooperation, in order to lower house prices, by lowering land premium charges.”
Well, let’s hope that this news will turn out to be true in the coming years.