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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