Residential properties offered beneath the Housing Growth Act (HDA) can be exempted from the replace Gross sales and Providers Tax (SST), following considerations from the development business over rising prices.
Housing and Native Authorities Minister Nga Kor Ming stated the exemption applies to all residential buildings, together with serviced residences constructed on business land, supplied they’re supposed for residential use and fall beneath the HDA.
He stated this following discussions with Finance Minister II, Datuk Seri Amir Hamzah Azizan after business gamers raised considerations in regards to the impression of cascading taxes beneath the revised SST framework.
Nga stated the problem can be addressed via business-to-business (B2B) exemptions, guaranteeing that the service tax is just utilized at a single stage.
The Finance Ministry clarified that fundamental building supplies comparable to cement, sand and aggregates will proceed to be taxed at 0 per cent. Of the 400 tariff codes masking constructing supplies, solely eight will see a rise, affecting objects comparable to laminated glass, netting and vats.
“This can have an effect on solely two per cent of the entire constructing materials tariff codes,” he stated.
Nga added that contractors might also separate materials prices from service fees, permitting the service tax to use solely to building providers.
He famous that the federal government stays dedicated to balancing fiscal reforms with housing affordability.
“KPKT will proceed participating with the Finance Ministry and stakeholders to make sure truthful implementation of tax insurance policies and defend the pursuits of homebuyers,” he added.
Supply: Bernama
