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The construction industry has called on the Government to allow tax deductions on housing loan interest. From The Star Online, 27 August 2008.
Real Estate and Housing Developers’ Association president Datuk Ng Seing Hong said that offsetting housing loan interest against personal income would benefit many people with property.
“We’ve been harping on this for quite some time because many advanced countries have been practising it.
“It’s what they call negative gearing,” he told reporters after the launch of the International Construction Week 2008 at Kuala Lumpur Convention Centre here yesterday.
“Let’s say if one has a housing loan of RM100,000 with a yearly loan interest of 8% and a yearly income of RM60,000. This means his taxable income will only be RM52,000 after the deduction of the housing loan interest. He will save RM8,000.”
He said the industry was also hoping for a reduction of stamp duty for housebuyers as well as that of income tax and corporate tax in line with Asian countries.
He also called for the Government to allow brick companies to enjoy the abolition of withholding tax and to provide home ownership grants as practised in Australia.
“We hope this Budget on Friday can answer our calls,” he said, adding that the price of low-cost houses should also be increased from RM42,000 to RM60,000 per unit in view of the rising cost of raw materials.
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