With GST now zero-rated across the board and SST yet to be implemented, businesses are expecting brisk sales during this tax holiday period.
In an interview with The Star newspaper, KPMG Head (North) Dato’ Ooi Kok Seng, said that the middle class earners can increase their purchasing power by 2% to 4% following the zero-rating of GST. Household essentials, lifestyle goods and services, RON97 petrol and utility bills are some of the items that are subject to GST. According to Ooi, house buyers can also expect a possible reduction in the selling price of new residential properties.
“The cost of construction will go down with the zero-rating of GST for building materials and construction services. Although the SST will come in, it essentially is a narrow-based one tier tax system that covers certain raw materials. The lower construction cost may lead to a possible reduction in selling prices and boosting the demand for residential properties,” Ooi said.
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