Latest news with #HousingDevelopment(ControlandLicensing)Act1966
The Sun
15-06-2025
- Business
- The Sun
SST exempt on residential properties under Housing Development Act, says Nga
PETALING JAYA: Residential properties sold under the Housing Development Act (HDA) are not subject to the Sales and Services Tax (SST), says Housing and Local Government (KPKT) Minister Nga Kor Ming. He said that the exemption is based on either the land title or the property's intended use. 'In essence, all residential units — including serviced apartments that sit on commercial land titles — are exempt from SST, provided they are meant for residential purposes and fall under HDA regulations,' he said in a statement yesterday. Nga made this statement following a consultation with Finance Minister II Datuk Seri Amir Hamzah Azizan, in response to feedback from industry stakeholders expressing concerns about the updated SST framework. The Housing Development (Control and Licensing) Act 1966 (HDA) is designed to regulate housing development and protect homebuyers when purchasing residential properties from developers. The Act has undergone multiple amendments — especially in 2002, 2007, 2012, and 2015 — to strengthen consumer protection, regulate developers more strictly, and adapt to the evolving housing market in Malaysia. Nga also explained that the issue of cascading taxes is addressed through a Business-to-Business (B2B) exemption, ensuring that service tax is imposed at only one level. According to the Finance Ministry, basic construction materials such as cement, aggregates, and sand remain subject to 0% sales tax. Out of 400 tariff codes applicable to building materials, sales tax has been increased for only eight, covering items such as vats, laminated glass, and netting. This will affect only 2% of the total building material tariff codes. 'Contractors may choose to separate material costs from service charges, allowing the service tax to apply solely to construction services,' he added. Nga added that KPKT remains committed to continuous engagement with the Finance Ministry and other key stakeholders to ensure fair implementation of tax policies, safeguard the interests of homebuyers, and support a stable, sustainable housing sector. 'In line with the Madani aspirations, the ministry remains committed to preserving housing affordability and protecting homebuyers' interests under the revised SST framework,' he added. The Finance Ministry recently announced that the revised and expanded SST outlined in Budget 2025 will take effect on July 1, 2025. A sales tax rate of five to 10 per cent will be imposed on selected non-essential goods. The scope of the Service Tax will be extended to include new services such as rental or leasing, construction, finance, private healthcare, education, and beauty services, with a 6.0 per cent tax applicable to providers earning over RM1.5 million annually. Amir Hamzah said the SST revision and expansion reflect an increasingly sophisticated tax system that reflects values of shared prosperity and, importantly, prevents the rich-poor gap from widening further.
The Sun
15-06-2025
- Business
- The Sun
Residential Properties Under HDA Exempt from SST: Nga
PETALING JAYA: Residential properties sold under the Housing Development Act (HDA) are not subject to the Sales and Services Tax (SST), says Housing and Local Government (KPKT) Minister Nga Kor Ming. He said that the exemption is based on either the land title or the property's intended use. 'In essence, all residential units — including serviced apartments that sit on commercial land titles — are exempt from SST, provided they are meant for residential purposes and fall under HDA regulations,' he said in a statement yesterday. Nga made this statement following a consultation with Finance Minister II Datuk Seri Amir Hamzah Azizan, in response to feedback from industry stakeholders expressing concerns about the updated SST framework. The Housing Development (Control and Licensing) Act 1966 (HDA) is designed to regulate housing development and protect homebuyers when purchasing residential properties from developers. The Act has undergone multiple amendments — especially in 2002, 2007, 2012, and 2015 — to strengthen consumer protection, regulate developers more strictly, and adapt to the evolving housing market in Malaysia. Nga also explained that the issue of cascading taxes is addressed through a Business-to-Business (B2B) exemption, ensuring that service tax is imposed at only one level. According to the Finance Ministry, basic construction materials such as cement, aggregates, and sand remain subject to 0% sales tax. Out of 400 tariff codes applicable to building materials, sales tax has been increased for only eight, covering items such as vats, laminated glass, and netting. This will affect only 2% of the total building material tariff codes. 'Contractors may choose to separate material costs from service charges, allowing the service tax to apply solely to construction services,' he added. Nga added that KPKT remains committed to continuous engagement with the Finance Ministry and other key stakeholders to ensure fair implementation of tax policies, safeguard the interests of homebuyers, and support a stable, sustainable housing sector. 'In line with the Madani aspirations, the ministry remains committed to preserving housing affordability and protecting homebuyers' interests under the revised SST framework,' he added. The Finance Ministry recently announced that the revised and expanded SST outlined in Budget 2025 will take effect on July 1, 2025. A sales tax rate of five to 10 per cent will be imposed on selected non-essential goods. The scope of the Service Tax will be extended to include new services such as rental or leasing, construction, finance, private healthcare, education, and beauty services, with a 6.0 per cent tax applicable to providers earning over RM1.5 million annually. Amir Hamzah said the SST revision and expansion reflect an increasingly sophisticated tax system that reflects values of shared prosperity and, importantly, prevents the rich-poor gap from widening further.
The Star
17-05-2025
- Business
- The Star
Housing Ministry mulling new law to address abandoned commercial properties
PETALING JAYA: The Housing and Local Government Ministry is considering introducing a new law to address abandoned commercial properties and to improve consumer rights protection, says its minister Nga Kor Ming. Nga said mixed developments such as retail, commercial, small office/flexible office (Sofo) and Sovo (small office/versatile office) properties are not covered under the current Housing Development (Control and Licensing) Act 1966 (Act 118), which is limited to residential developments. 'Due to the absence of legal protection, buyers affected by abandoned projects under these categories often find themselves with no legal avenues for recourse. 'Following extensive engagements with industry professionals, NGOs and other stakeholders, the Ministry has decided to study a new act known as the Real Property Development Act (RPDA) to resolve this issue,' said Nga during his opening speech at the StarProperty Real Estate Developers Awards 2025 on Thursday (May 17). Nga said the RPDA will expand the scope of Act 118 to include certain commercial developments which will safeguard the rights of property purchasers. Nga said the RPDA aims to streamline the process for both buyers and developers by incorporating the Option to Purchase (OTP) framework, which will allow the termination of the Sale and Purchase agreement by the buyers if they are dissatisfied with the progress of the development. Meanwhile, Nga said his ministry is mulling the Building Managers Act to address the chronic issue of poor property and building management. Nga pointed out that presently, there are only 594 firms licensed to practice property management, serving 26,334 strata schemes or 2.91 million strata units in Malaysia. On average, he said, each firm is responsible for managing 44 strata schemes or 4,898 strata units. 'This highlights a serious gap where there are insufficient licensed firms to effectively manage all existing strata schemes. As a result, many property owners and tenants face significant challenges due to declining property values caused by poor property management,' he said. 'With the Building Managers Act, along with the soon-to-be tabled Urban Renewal Act, we are committed to addressing the root problem of aged, dilapidated urban buildings and propelling Malaysia towards becoming a developed nation,' added Nga. As of March this year, the Ministry, through the Taskforce on Sick and Abandoned Private Housing Projects, has successfully revived 1,044 private housing projects nationwide worth RM100.1bil in total, benefitting 124,539 homebuyers.
