Builders warn SST may push property costs up by 5%
The gross sales and repair tax (SST) is rising as a serious concern for property builders, with greater than 70% planning to lift property costs by 3% to five% as a consequence of greater prices, in line with a survey by the Actual Property and Housing Builders’ Affiliation (Rehda) Malaysia.
The survey, which coated 187 builders, confirmed that 62% count on the SST to considerably enhance mission prices and disrupt enterprise operations. About 70% anticipate building prices will rise by at the least 3%, prompting 73% of respondents to contemplate value hikes.
Rehda president Datuk Ho Hon Sang stated the affiliation is working with the federal government to refine SST guidelines, stressing the necessity for clearer pointers for the development and property sectors. He famous that measures comparable to avoiding double taxation and providing tax incentives for key supplies and eco-friendly merchandise would assist ease the burden.
Builders are additionally calling for enter tax credit or quicker refunds to enhance money movement, simplified SST charges together with tiered choices, and enhanced digital programs to facilitate smoother dealings with Customs and related authorities.
Highlighting the complexity of the tax, Ho defined that whereas residential properties are exempt, industrial properties are topic to SST, creating confusion in blended developments. “Supplies are usually exempt, however human labour and equipment leases — which make up a good portion of our price inputs — are taxed. It’s very cumbersome for builders to itemise every element. That’s why we’re proposing a simplified strategy, comparable to a flat 3% SST,” he stated.
Past tax reforms, Rehda can also be pushing for the revival of the Residence Possession Marketing campaign (HOC), which beforehand provided stamp responsibility exemptions. Ho stated previous campaigns recorded sturdy take-up charges and believes a reintroduction may enhance market confidence and encourage shopping for exercise.
