RPGT to be calculated from year 2000
The Real Property Gains Tax (RPGT) valuation on property would only be calculated from the year 2000 onwards, says Finance Minister Lim Guan Eng.
He said that this is done to give clarity on the issue following feedback from concerned property owners who have bought and owned land extending decades before 2000.
“On RPGT, the government previously announced rise to five percent, but the ministry had received feedback that the cut-off date of evaluation was not set.
“There were parties that raised concerns that if the property was bought since 1960 and later sold, how much is the tax that they need to pay.
“Therefore, the ministry had set the date of valuation to begin from the year 2000 despite the land being owned since 1960. It would only be valued from 2000,” he said at the Dewan Rakyat during his wrapping-up speech on 2019 Budget at the Dewan Rakyat today.
Previously when tabling 2019 Budget, Lim said the government raised the RPGT to five per cent.
However, this tax is exempted on low-cost houses and affordable housing priced below RM200,000, among others.
Source: NST Online
How is this benefiting the rakyat? Under the previous government there is no RPGT from 6th year of ownership onwards. His statement “government raised the RPGT to 5 percent” is somewhat misleading. Once again, there was no RPGT from 6th year onwards under the previous government. The new government is essentially introducing new tax here.
@Gabriel
This will result in additional revenue for the gov, to ensure all ministers are getting paid on time. They are part of the rakyat too right? So it benefits the rakyat!!!
@jjtpk
The previous ministers from the previous governments were still getting paid on time with none of this additional taxes. So, what gives?
@Gabriel
I have no idea my friend. They are doing many things that don’t make sense. For this 5% after 5 years, it really doesn’t make sense at all. If they want to discourage speculation (short & mid term), they should have done a 0% beyond say, 10 years, 5-10 years 5%, 0-5 years 20%, something like that.
Although LGE just clarified that valuation for any RPGT will start from year 2000, that would still be significant money for many of those long term investors. Well, when he was in PG CM, he did many things that don’t make sense too. His intelligence level is not high (not his fault), and since so many people want to support him, guess we’ll just have to bear with it. What to do??
Anyway, I bet there will be a way to go round this RPGT shit. I agree with high tax for short term speculators, but they shouldn’t punish long term investors and genuine owner-occupiers. Again, this world is full of brainless people, we will just have to count on ourselves then.
@Gabriel
I agree with you. This is a new tax but in camouflage just to fool around !
“I’m broke paying RGPT” says no one ever.
What happen if my low medium cost unit sold at above RM200,000 , do i have to pay tax if it is already more than 10 years??? Pls advise
@Siew Lai Lai
All must pay la ！
Mainly because our gov is now seriously in financial trouble.
@jjtpk
good job LGE, some greedy people just want time of easy money to go on forever. i would say tax them kau kau …