Sunday July 6, 2008
Ministry may cut tax to help developers cope
KUALA LUMPUR: Reducing tax on building materials and stamp duty charges for sale and purchase agreements are among ideas being considered by the Housing and Local Government Ministry to help developers counter the rising prices of raw materials.
Minister Datuk Seri Ong Ka Chuan said the Government was working on measures following a memorandum from the developers that costs had increased because of the recent increase in fuel prices.
The ministry would make the necessary suggestions to relevant authorities like the Finance Ministry, he said.
“It varies between 28% and 34% but the average increase is 30%. So, a house that previously cost RM100,000 to build has now gone up to RM130,000,” he said yesterday.
“We worry that projects may be abandoned. We will suggest to the relevant authorities like the Finance Ministry to lower taxes for building materials such as steel bars, cement and tiles. We also hope the stamp duty for charges for S&P agreements can be reduced.”
Works Minister Datuk Mohd Zin Mohamed said on Friday that steel and cement might be stockpiled to curb escalating prices.
Ong said the ministry was getting feedback from the relevant authorities and hoped certain measures could be included in Budget 2009.
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