17 April, 2007

Abolition of RPGT

The abolition of Real Property Gain Tax has announced and effective on 1st April 2007.

Most of the people are cheerful to this announcement. As property seller will no longer need to hold too long of a property before get the exemption of property tax charge. With reduction of holding cost, it increases the profit margin and also be more competitive in property sector. Buyer is also benefited from a competitive environment as may get a better deal.

How serious of the impact to consumer will only be reflected in few months time. The process of purchase a property always takes time, but obviously the first wave of the news has boosted the property share in the market. Most of the active property players have soared in share price, especially those involved in High end property.

Wherever there is a white, black is always at its side. Did we ever think of the disadvantages of this abolishment.? and what make government to implement it now but not 5 or 10 years ago?