THE Malaysian government intends scrapping capital gains tax on property deals from April 1.
By getting rid of CGT on property deals the Malaysian Prime Minister Abdullah Ahmad Badawi said the decision would “inject more excitement and dynamism in both the property and financial sectors.”
“Potential that has gone unrealized or under-optimized will be turned into new industries and businesses, new value creation and new jobs,” Abdullah said yesterday.
The Malaysian property market has recently stalled and according to property commentators is undervalued compared to other countries in the region, especially
Property commentators told Australian Property Journal that by scrapping CGT on property it would encourage investment in property in Malaysia and at the same time create more liquidity into the market.
“Going forward to further improve the national property sector, the government has decided not to impose real property gains tax throughout the country commencing 1st April, 2007,” the Malaysian PM added.
Australian Property Journal
