OOH ! U HAVE NOTHING TO TAX AH ?

The Malaysia Govt has announce in Budget 2010 last month to implement 5% property gain tax on ALL property gain effective 1.1.2010.

This is not RPGT that impose tax on property sales for property disposal within 5 year of purchases, to control property speculation.

This new 5% tax will impose on ALL property sales, irrespective of how long you own the property, even you have dispose 20,30, 0r 100 years of old property.

AND the gain is straight forward selling price less purchase price. No deduction of bank interest, no adjustment on inflation rate.

THIS TAX IS NOT FAIR TO LONG TERM PROPERTY OWNER AND TOTALLY UNACCEPTABLE.

Why do not bring back the RPGT that tax on property gain from short term property speculators ?

This speculator grasp a huge gain from property speculation within short period of time, they 'GORENG' up the property price in the expense of the average home buyer.

The speculator should be the subject of this Property Gain Tax, not the normal average HOME owner.

MY GUESS ON WHY THE GOVT ULTIMATELY IMPOSE SUCH A SILLY TAX ON ALL PROPERTY OWNER :-

1) The Govt is actually thinking of bring back the RPGP in 2010 as the Govt need new tax to increase the Govt's revenue.

2) BUT this plan was facing resistance from Property Developer, because if RPGT is imposed, then all property developer will find it difficult to sell their properties, their BIZ will be affected badly. esp. when the economy has not recovered from the financial crisis.

3) The Govt has no choice, they can't confronting this 'Property BIG Boss', & the govt is in dire need to find some extra income, therefore the Govt has finally come up with this SILLY Tax:-

Tax 5% only, a small % tax on gain, from ALL property sales. Don't care whether it s new or old property, speculator or home owner, fair or not fair.