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  • Sheda Hopes Residential Housing Developers Be Exempted From GST
  • Sheda secretary-general Sim Kiang Chiok.

    KUCHING: Sarawak Housing and Real Estate Developers Association (Sheda) hopes that residential housing developers would be exempted from the Goods and Services Tax (GST), which would be implemented in 2015.

    Sheda secretary-general Sim Kiang Chiok (pic) said as the cost of building materials and location was increasing year by year, GST might cause the cost of houses to increase slightly although it would not be passed on to purchasers or buyers.

    “The cost (of houses) would not be directly increase 6%. It could be lower (than 6%) because there is a saving from sales and service tax (SST).

    “For example, if you buy a house in a non-strategic area, if the cost is too high, nobody would buy. So there would be slight adjustments. That adjustment does not mean that the house prices would go up tremendously because there would be an offset to the SST,” he told a press conference after officiating at a Sheda seminar on GST here yesterday.

     

    Sim said the seminar was aimed at preparing Sheda members for the implementation of the GST, particularly the procedures and documentation.

    “Of course, developers will incur a little more cost in running the GST like invoicing, tax, and more administration work, but more job openings would be created too,” he said.

    Apart from educating its members, Sim said he hoped that after some insight on GST, its members would also give some feedback especially to exempt residential housing projects from GST.

    “We hope that maybe with this seminar and with our feedback, they (Government) might give us zero rated, we never know. The feedback would be reported to Putrajaya and maybe would reach our good Prime Minister (Datuk Seri Najib Tun Razak) where residential houses should be zero rated.

    “That is what we are pursuing so that we would also reduce administration cost for implementing the GST,” said Sim.

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