CHEAPER houses

PETALING JAYA: Cheaper houses are expected i n future with basic building materials and construction services to be exempted from the sales and services tax (SST).

Finance Minister Lim Guan Eng said this impact is also expected to be felt i n the construction of industrial and commercial buildings nationwide.

He pointed out that under the goods and services tax ( GST) previously, materials such as bricks, cement, sand and other basic construction items were subjected to the 6% tax, leading to increased property prices.

“I n addition, construction services were also subjected to the 6% GST. This has led to increased construction costs under the GST era, including the increase in house prices,” he said in a statement yesterday. “The pressure on house prices, i ndustrial and commercial buildings is expected to be eased by the abolition of GST and the e x e mpti o n o f S S T. The government hopes that construction costs can be reduced with the exemption of SST.” He said some of the materials to be SST-exempted are cement, sand and steel.

The Pakatan Harapan government, in i t s el ecti on manifesto, had promised to abolish GST and reintroduce SST to reduce the burden of high cost of living of the rakyat.

Parliament had last week passed the bills to abolish GST – which is now zero-rated – and introduce SST,