New GST guideline for property industry

Type the text hereIn order to soften the blow of the impending Goods & Services Tax (GST) on the housing market, the government will release a new guideline on the said tax based on inputs and feedback from the public and the Real Estate and Housing Developers Association (REHDA).

The aim of this new guideline is to provide GST relief for all market players, especially home buyers, according to Tan Sim Kiat, Deputy Director of the Royal Malaysian Customs Department from the GST Division.

“The government is listening to everyone and that is the reason we are trying to make sure everything is being put in a package before the implementation of the tax,” he said at the ongoing National GST Conference on Friday.

Tan is one of the speakers for a session on the GST’s effect on property-related sectors.

Suggestions fielded during the event include a GST relief order for affordable homes costing up to RM400,000, and some form of assistance for suppliers to help address cash flow problems.

Tan also clarified that free parking lots given by developers in residential projects are exempt from the GST, while those in commercial properties are covered by the tax.

The government will release the new guideline when it is ready

Farah Wahida, Editor of PropertyGuru, wrote this story.