Houses should be zero-rated under GST

Farah WahidaNovember 6, 2014

Malaysia’s Real Estate and Housing Developers’ Association (REHDA) hopes that the government will listen to its proposal that residential property should be treated as zero-rated items under the upcoming Goods & Services Tax (GST).

“REHDA shares the same aspiration as the government in providing affordable housing to the people, so we truly hope that the government will take heed of our appeal,” according to its President Fateh Iskandar Mohamed Mansor during the inauguration of Wisma REHDA.

“In its current form, developers are not allowed to claim input tax and this will inevitably affect house pricing in the long run.” But if the group’s recommendation is heeded, developers can claim input tax for construction materials used in their projects, he explained.

Moreover, REHDA supports the government’s noble goal of providing low-cost housing to Bumiputeras. However, the organisation believes that this task should be shared by all stakeholders and not just housing developers.

As such, Fateh Iskandar is urging the government to take into account the interest of small- and medium-sized developers before implementing new rules, policies or measures.

This is because these developers often build houses at marginalised locations, but they are the most affected when negative property curbs are imposed across the board. Additionally, the government’s recent property cooling measures have become more onerous for home builders.

“To competitively position the housing and property industry as an efficient value adding sector of the economy, we would like to propose that impractical and redundant policies, legislative provisions, guidelines and practices that inhibit progress be reviewed in total,” he added.


Farah Wahida, Editor of PropertyGuru, wrote this story. To contact her about this or other stories email



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