Developers say would pass SST savings to property buyers

Developers say would pass SST savings to property buyers

KUALA LUMPUR,. Property developers will review prices of new homes in response to the government’s call for tax exemption savings on construction materials to be passed on to consumers.

According to the New Straits Times, some said they could also apply discounts to existing units despite the Sales and Services Tax exemption only coming into effect last month.

Real Estate and Housing Developers Associations’ (Rehda) president Datuk Soam Heng Choon said his association was studying the exact savings from the exemption before arriving at new prices.

“The amount of savings will then be passed on to consumers. We expect to resend it in a month before the 2019 Budget announcement,” he was quoted as saying.

The Penang chapter of Rehda hoped to bring down overall house prices in the state by 10 per cent for property priced above RM300,000 and six per cent for affordable housing units.

Mah Sing Group Bhd chief executive officer Datuk Ho Hon Sang said his firm will also study possible discounts.

“We understand Finance Minister Lim Guan Eng’s intention is to help house buyers, especially first-time buyers and the younger generation.

“We will abide by Rehda’s advice and the savings attributed to the change from the Goods and Services Tax (GST) to SST would be passed on to the purchasers,” he was quoted as saying.

Ehsan Plant and Property Sdn Bhd CEO Datuk Abdul Hamid P.V Abdu said more study was needed before his firm could commit to discounts.

He asserted that the SST exemption was not exhaustive and only applicable to some building materials while others were still taxed.

“Building materials such as tiles and doors are still subject to SST of 10 per cent,” he said.

Lim previously warned builders that the exemption could be withdrawn if it does not result in direct savings to consumers.