By DayakDaily Team
KUCHING, Oct 4: The Federal government should reconsider several taxation policies to alleviate the rising cost of living prior to the tabling of Budget 2025 this Oct 15, says Sarawak United Peoples’ Party (SUPP) Stakan branch chairman Dato Sim Kiang Chiok.
While he commended the government’s recent announcement on salary increases for civil servants which would stimulate domestic demand and provide some economic relief, he said several taxation policies deserve reconsideration such as the proposed Luxury Tax, the Low-Value Goods Tax, and the increase in Sales and Service Tax (SST) from 6 per cent to 8 per cent.
“The introduction of these new taxes may have unintended inflationary consequences. Policymakers should carefully review these measures to ensure they do not further burden households,” he said in a statement today.
He also said instead of taking away fuel subsidies completely, the government should tighten enforcement to prevent leakages and monitor petrol dealers for compliance so price hikes don’t happen while maintaining subsidies for the poor.
On the government’s decision to mandate e-invoicing for all businesses in Malaysia, he said the current proposed threshold of RM150,000 annual turnover should be increased to at least RM500,000 to alleviate the digital invoicing costs for smaller businesses that may not have the resources to comply.
On housing, Sim who is also Sarawak Housing And Real Estate Developers’ Association (SHEDA) advisor, called for the revival of the Home Ownership Campaign (HOC) where for properties priced up to RM2.5 million, a stamp duty exemption on the sale and loan agreements would ease the burden on homebuyers.
“Additionally, developers should be required to offer at least a 10 per cent discount on the approved property prices, similar to previous HOC measures.
“The extension of the stamp duty waiver for first-time homebuyers beyond 2025 is another initiative worth considering. Further support could be offered through the reinstatement of the RM30,000 deposit incentive for first-home purchases, as well as reductions in housing loan interest rates,” he added.
To stimulate activity in the property market especially in the commercial and office space segments, he also suggested reducing Real Property Gains Tax (RPGT) rates, particularly during the first three years of ownership.
On construction costs, he recommended the government to consider lowering import taxes and levies on building materials and equipment.
“Finally, grants could be made available to Strata Title Management Corporations to assist with their running costs.
“These buildings, being gated and guarded, generally require less security and maintenance compared to landed housing estates, where road repairs and landscaping are significant ongoing expenses,” he stressed. — DayakDaily
