The implementation of RPGT is good for the long term, but implementing it right now, without a list of exemptions, is quite stupid.

1. The implementation at 5% irrespective of number of years of acquisition is unfair.
- Consider if a person who has been living in his home for 30 years in PJ. Then he retires and want to relocate, upgrade to a larger home or downgrade to a smaller home. The gain on selling his home today will be a huge difference from his buying price 30 years ago. Therefore, the 5% tax on his gain is HUGE. But it does not mean he is selling a property due to speculating, because most buyers of properties for more than 5 years are more likely a home-occupier, and yet they would be burderned by the RPGT.

2. The Malaysian property sector is just recovering from a downturn, and then the government tries to "foolishly shock" it.
- The RPGT will adversely affect the recovery of Malaysian properties at all levels, and will dampen the interest of foreign buyers for highend properties. So many developers who are getting ready to launch new homes in the next few months have shown their displeasure and they are now considering "Pause" and "Gauge" the market conditions before launching.

3. Given the current demand of first-time buyers or rather the increasing urban-working young families, the properties in most strategic areas around Klang Valley will continue to rise.
- If the RPGT's objective is to reduce speculative prices, then it will only work in the very short-term. People and developers will eventually hike up the prices to include the RPGT. And this causes market distortion and truly unfair to first-time buyers.

4. If the seller have incurred huge amount in loan payments in mortgages etc, does that include in the amount of selling price as to reduce his gains to be taxed?

This post has been edited by accetera: Oct 27 2009, 11:36 AM