28 September 2012

Budget 2013 - Real Property Gains Tax (RPGT).

Our PM just announced that the Real Property Gains Tax will be reviewed, whereby the real property gains tax will be imposed on profits on disposal of property made within a period not exceeding 2 years to be at 15%, and those between 2 to 5 years to be at 10%. Properties held longer than 5 years are not subject to RPGT. Transfer of properties within families are also exempted. 

While some say that this move will affect the industry negatively, I think with the current economic conditions, having an increased RPGT is able to curb property speculation to avoid property bubbles from forming. I view this very positively and I believe that 'overspeculation' on property prices need to be managed and 'cooled' down to ensure that everyone can buy a property today. Furthermore, RPGT is indeed another source of income and revenue for the Government.


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