SHAH ALAM, 17 June: The Barisan Nasional (BN) government has been urged to grant an exemption of the goods and services tax (GST) for building materials used for affordable homes, among them the Selangorku Homes, to avoid rising costs.
The Executive Councillor in charge of Housing, Building Management and Urban Settlers, Iskandar Abdul Samad, said that although the sales of homes are not subject to the GST, however building materials are not spared from the tax.
He said that the State Government has also received information that building materials such as steel, cement, sand, bricks and tiles are not included in the GST exemption.
“Developers have the choice whether to increase the selling price or settle for a deduction on returns and profits.
“There is also the possibility when developers do not want to take a deduction on returns but build houses with a lower quality.
“This is certainly not fair to the buyer. In fact, it would be a loss if developers no longer want to build affordable homes,” he said in a statement today.
Iskandar, who is also the Assemblyman for Cempaka, said that the State Government has approved the Selangorku Homes policy that ensures for the total unit of houses in a project that exceeds the prescribed area to be built at a cost between RM42,000 and RM250,000.
He said that the number is between 30 to 40 percent and an area that exceeds five or ten acres, depending on the district and sub-district.
“Therefore, imposing the GST on building materials needs to be reconsidered if the prices of the houses are to be maintained at the level of affordable homes for those earning a low to middle income.
“The Federal Government should assist in this effort so that the people can own quality homes,” he said.
NS
