By Nurul Rustam
In recent news, it was announced that construction services and certain building materials were exempted from Sales and Service Tax (SST) that was recently reinstated effective from 1st of September 2018 in place of GST. Due to this exemption, Finance Minister Lim Guan Eng is hoping to see positive changes in housing prices. He also noted the car prices of several brands such as Perodua, Honda, BMW, and Volkswagen have dropped since the implementation of SST, hence there should be a positive response from the housing sector as well.
Lim Guan Eng also said the government would also review the current corporate tax rate in order for Malaysia to maintain its competitiveness in this region. Pointing out his point of view, he has no intention of raising the corporate tax due to the country’s current financial situation that made it difficult for the government to decide about it. The announcement of the new corporate tax would be made during the tabling of Budget 2019 on November 2.
Sources: The Star