KUALA LUMPUR: PricewaterhouseCoopers Taxation Services Sdn Bhd on 17 October suggested that the government increase the real property gains tax (RPGT) to 30 per cent in the 2014 Budget to be announced on October 25.
"This is to dampen speculation in the property market and control spiralling property prices," said Senior Executive Director Steve Chia Siang Hai.
RPGT is a form of capital gains tax chargeable on gains arising from the disposal of real property.
Currently, RPGT is charged at 15 per cent for properties disposed within two years and 10 per cent for disposals made within three to five years aimed at curbing speculation in the property market.
Chia told a briefing on the 2014 Budget here Thursday besides increasing the RPGT, the government should also tighten the loan eligibility for the third property onwards by reducing it to only 50 per cent from the current 70 per cent.
"This will help others own a property as currently it was reported that one-third of Malaysians were yet to own any property," he added.
On foreign property ownership, Chia said the government should increase the property floor price for foreigners from RM500,000 to RM1 million as currently, a lot of properties in the market were priced around RM500,000.
"This will not deter foreigners from buying local properties as they were still cheaper compared with other countries in the region," he added.