REHDA Wants GST Be Implemented Gradually
Changes at the Top in Tropicana
any method (segregation
between residential and
commercial property
development) -- in
claiming residual input tax
credits as this would help
ease the administrative
burden when claiming
residual input tax.
The Real Estate and
Housing Developers’
Association Malaysia
(REHDA) has proposed
that the goods and
services tax (GST) be
implemented gradually
as it will have an
adverse impact on the
affordability of housing to
the people.
Its Finance and
Investment Committee
Chairman, Datuk Ng
Seing Liong, said the 6%
GST, which would be
implemented from April
1, 2015, was quite
high and the consumers
would be burderned by it.
“The developers’ margins
will also be lower with the
GST,” he said at a media
briefing on ‘GST -- Impact
on the Housing Industry’.
Ng said REHDA has
submitted its proposals
on the GST to the
government and was
awaiting the response.
“REHDA has requested
the Finance Ministry give
serious consideration
to the proposals as the
implementation of GST
in its current form will
cause financial hardship,
adding to the costs of
development resulting
in overall increase in
house prices and will be
eventually passed on to
the buyers,” Ng said.
He said one of them was
that REHDA wanted the
government to extend
the zero-rated goods and
services to major cost
components of property
development projects like
steel bars, iron, cement,
concrete and aggregate
sand or consider
provisions for some relief
to the suppliers to help
them deal with cash flow
issue.
“The suppliers may end
up passing the costs in
the form of higher prices,”
he said.
The industry also wanted
the stamp duty on
transfers of real property
be maintained at the
current maximum 3%
instead of the proposed
four,
he said.
Ng said the imposition of
GST would add another
layer of cost as there
were already multiple
‘taxes’ imposed such as
real property gains tax,
Construction Industry
Development Board levy
and service tax.
Another proposal,
he said, was to allow
developers adopt a fixed
allocation -- either builtup, land area (acreage) or
For sale purchase
agreements of land
entered prior to
appointed date of April
2015, payments received
of invoices issue prior
to the appointed date
where the supply of land
is made available after
appointed date will not
attract GST, he said.
Tropicana’s first project in Kota Kinabalu, Tropicana Landmark
Tropicana Corporation
Bhd has promoted two
key members of its senior
management team and
appointed a second group
managing director, as the
company seek to boost
its transformation into
becoming one of the top
developer in the country.
Former group managing
director Datuk Dickson Tan
was promoted to deputy
group chief executive
officer. His deputy, Edmund
Kong Woon Jun, has been
appointed group managing
director.
The group has also
appointed Kok Kong Chin,
who was previously a banker
at CIMB Group, the other
group managing director
effective March 14.
Better known as KC Kok in
investment banking circles,
Kok was responsible for
bringing the private equity
firm, CVC Capital Partners,
to Malaysia during the
privatisation if Magnum Corp
Bhd in 2007.
Then Kok was a senior
member of CIMB Investment
Bank.
“The promotion of Dickson
Tan and Edmund Kong
to positions of greater
responsibility is timely as it
coincides with our strategic
transformation plan for
accelerated growth and
unlocking of value of the
Group’s substantial asset
base and landbank,’’ Tan
Sri Danny Tan Chee Sing,
founder and group executive
vice chairman said in a
statement.
“I trust that with the
capabilities of both Dickson
Tan and Edmund Kong,
together with Datuk Yau
Kok Seng who joined us in
January last year as group
CEO.
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