The following is an extract of a report in The Star newspaper on 24 December 2009.
PUTRAJAYA: The real property gains tax (RPGT) announced during the 2010 Budget will now only apply to property sold less than five years from its purchase, Datuk Seri Najib Tun Razak said.
The Prime Minister said the 5% tax would now only be imposed on property sold within five years of the date of purchase.
He said the decision would cause the Government to lose about RM200mil in revenue, adding the move was made following appeals from the Federation of Chinese Associations of Malaysia (Hua Zong) and the business sector.
“This was also decided upon as the Government wants to see a stronger growth in the property sector next year. We are willing to forgo a substantial amount of revenue so that the sector can expand and grow.
“The property sector has shown signs of improvement but we feel that it requires further impetus so that it can continue to grow from strength to strength.