Surtax on house buys

Surtax on house buys

KUALA LUMPUR (DPA): Malaysian property developers Saturday criticized government proposals to squeeze foreign speculators out of the Malaysian property market.

The developers complained that the changes would send construction company stocks plummeting along with the price of up-market homes.

In budget proposals presented to parliament Friday, Finance Minister Anwar Ibrahim recommended a 100,000 ringgit (US$40,000) levy on house purchases by foreigners next year.

He also announced an immediate 30 per cent capital gains tax on the property sales by foreigners. The moves follow a ruling that foreigners can only buy houses valued at more than 250,000 ringgit.

The moves are aimed at dampening speculation by foreigners. The most active speculators in the Malaysian housing market come from Singapore.