Minister: Govt to study proposal on imposing vacancy tax for unsold luxury condos in Klang Valley

Edmund earlier said there were 2,260 unsold condominium units within the Klang Valley, of which 498 comprised luxury units worth RM1 million and above. — Photo by Choo Choy May
Edmund earlier said there were 2,260 unsold condominium units within the Klang Valley, of which 498 comprised luxury units worth RM1 million and above. — Photo by Choo Choy May

KUALA LUMPUR, Aug 13 — The government will study the proposal to impose a vacancy tax on developers to address the number of unsold luxury condominium units in the Klang Valley, Deputy Federal Territories Minister Datuk Seri Edmund Santhara Kumar said today.

Edmund said this in Parliament when answering Datuk Hasanuddin Mohd Yunus (PH-Hulu Langat) on whether the government will be imposing similar tax practices as seen in several other major cities around the world such as Vancouver in Canada and Melbourne in Australia.

A vacancy tax is a tax where any property that is left vacant and unsold for a certain amount of time is charged a penalty based on a percentage of gross selling price.

“From the ministry’s point of view on the proposal to impose such tax, since the number of unsold units is less than 4 per cent to date, there is no need for now but such a proposal would be studied further,” he said in the Dewan Rakyat here.

According to data provided by the National Property Information Centre (NAPIC), Edmund earlier said there were 2,260 unsold condominium units within the Klang Valley, of which 498 comprised luxury units worth RM1 million and above as of the second quarter of 2018.

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