HOUSE prices and the construction of new buildings will be cheaper after the abolishment of the goods and services tax (GST), said Finance Minister Lim Guan Eng.

He said during the GST era, basic materials like bricks, cement, and sand were subjected to the 6% tax, but would not be taxed more in the sales and services tax (SST) era.

“During the GST regime, basic materials such as bricks, cement, sand and other construction materials were subjected to GST at 6%. Construction services were also subjected to 6% of GST.

“This led to increased construction costs under the GST era, including the increase in house prices.

“The pressure on house prices, industrial, and commercial buildings is expected to be eased by the abolition of GST and the exemption of SST,” Lim said in a statement today.

The Pakatan Harapan government has now exempted cement, sand, and iron from the SST, which will make construction costs cheaper, Lim added.

“The federal government hopes that the construction costs can be reduced with the exemption of SST. Some of the building materials that will not be subjected to SST are cement, sand, and iron,” he said.

Many first-time house buyers cannot afford properties in the Klang Valley as prices are exorbitant.

Young Malaysians instead prefer to rent, and buy cars before properties.

The previous Barisan Nasional regime had introduced low-cost houses, including Perbadanan PR1MA Malaysia, which is building 141,661 affordable homes, but has managed to sell only 11,944 units.

The figures suggest that even PR1MA homes priced between RM100,000 and RM400,000 are out of the average Malaysian’s reach. – August 12, 2018.