GUAN ENG HOPES TO SEE DROP IN PROPERTY PRICES AFTER SST
SST exemptions should at least bring some changes in house prices, says Lim
THE Federal Government expects a more positive response from housing industry players following its decision to exempt construction services and certain building materials from the Sales and Services Tax (SST).
Finance Minister Lim Guan Eng said he noted that car prices had dropped since the implementation of the SST, and there should be a positive response from the housing sector as well.
“We hope there is at least some changes in housing prices and we expect to see a positive response in the future,” he said yesterday.
He was responding to a report in an online news portal that quoted Penang’s Real Estate and Housing Developer Association immediate past chairman Datuk Jerry Chan as saying that house prices were unlikely to fall even after the government’s announcement of tax exemptions.
Lim, who is the member of parliament for Bagan, said the government would also review the corporate tax for the country to maintain its competitiveness.
Expressing his personal point of view, Lim said he had no intention of raising corporate tax, but the country’s financial situation had made it difficult for the government to decide.
“We notice that neighbouring countries have reduced their corporate tax, and even the United States has reduced theirs from 35 per cent to 21 per cent.
“Based on the country’s financial situation, if we are capable of reducing it, then we will reduce the corporate tax rate. But if not, we will consider other options.”
He said the announcement of the new corporate tax rate would be made during the tabling of the 2019 Budget by Prime Minister Tun Dr Mahathir Mohamad on Nov 2.
Earlier, Lim and Customs director-general Datuk Seri T. Subromaniam attended an SST briefing with industry players here.