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RPGT, e-BE Filing, The
Rich & You
By Steven
Posted
20th April 2007
Past
weeks must have been busy for most of us
filling up online BE filing. I was one of
those, busy going through the e-form, most
of the time looking for areas where I can
get tax relief and digging up old receipts.
So as I was looking through the form, I
notice we do not get tax relief for buying a
home (remember I call this a home, not
house) or any more tax relief from the
interest for the home loans we are paying
the next 30 years or so.... I was like 'What
the hell??'
I really do not understand why this relief
is taken away. It cost all our savings for
middle to low income people like us to buy a
home, most of us will need home loans that
we will have to pay for the next 30 YEARS,
that is almost half of our life!! And the
more I think of it the more I could not
understand why this relief is taken away
while real property gain tax is waived.
Look at it this way, the real gainer from
RPGT waiver are the house speculator (notice
I use the word house now), property
developers and even banks. Let me explain my
points, property speculator will gain more
from house speculating as they are now not
taxed from their gain, this will throw more
players into the market. When they drive the
prices of second hand properties up, prices
of new properties will go up as well,
property developer could now raise the price
of their new projects.
Property
price is going to skyrocket, worst in city
like Kuala Lumpur and Penang. Landed
property such as above would be just a dream
for most people.
In the end, people like you and me, who do
not have enough money either to join the
speculation of properties or buy home with
cash, will have to PAY MORE to buy a home
for our families. In return we will need to
take bigger loans, paying more interest
along the way. I was just wondering if I
could now sign up my 3 months old daughter
to continue my loan after I retire.
I really hope our CARING GOVERNMENT could
re-introduce home loan interest deductions
and that is full home loans interest
deductions. I am sure this will spur the
property markets as much as the RPGT waiver.
This will then gain real people who truly
need relief, not loaded property speculator,
property developer or banks.
Please leave a comment if you support the
above blog. THANKS!!
Comments:
Well, i'm a property investor myself and a businessman. For me, putting off the tax is the best step the government can do to boast our local property industry. But the government has to come up with a solution to protect the poor income group of people so that they would not be deprived of owning their own home.
However, i can't deny that, if this is not properly regulated and control, it will turn out that the rich will get richer while the poor is getting poorer.
4/19/2007 10:05:03 PM | brethern
support you. i am staying in pg and one of the victims of expensive properties. staying in an apartment that is barely big enough for my family and servicing loans that will last me a life time. Mr. Government... time to act and show how much you care of the rakyat
4/19/2007 10:36:56 PM | ah seng
thanks for pointing this out. never thought of it that way.... shit man....
4/19/2007 10:39:25 PM | sien
Well, this definitely brings back the 80s when rich and well connected party will buy up many houses and sell it back with thousands of Ringgit in profit per-transaction. If this is not another get-rich-scheme, i do not know what to call it then.
Agree with above comments that the richer will get richer, while the poor ones will be marginalised even further away. By the way, i do not notice any effort by the Government to resolve this issue? Anyone knows anything?
4/22/2007 6:18:40 PM | Taman Mutiara Jaya
kanasai
4/24/2007 7:29:02 AM | kanasai
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