Rehda agrees to convince members to lower housing prices

GEORGE TOWN: The Real Estate and Housing Developers Association (Rehda) has agreed in principle to convince its members to lower housing prices by between 6% and 10% after the Finance Ministry waived the Sales and Service Tax on a wide spectrum of construction materials.
Penang Rehda chapter chairman Datuk Toh Chin Leong said following discussions with Finance Minister Lim Guan Eng, the association has decided to allow for a price reduction.
Ten percent is for housing units built after Sept 1 for prices of RM300,000 and above whereas 6% is for those listed in the affordable range.
Toh said the developers support the SST as it has reduced the burden on cost management among developers for construction materials.
"There is no tax imposed on items such as sand, cement and concrete bricks. So we have agreed to pass on the savings to the consumers," Toh told a press conference.
Lim praised Rehda for taking the lead to lower costs as SST is a taxation system which has allowed for greater exemptions compared to the Goods and Services Tax (GST).
He also announced car model brands which have also reported a reduction of between RM1,000 to RM3,000 for their vehicles following the adoption of the SST.
Lim again took a swipe at former premier Datuk Seri Najib Abdul Razak, whom he accused of intentionally trying to deceive consumers.
"He practises (economic) hypocrisy by trying to kick up a fuss about SST. When he imposed GST at 6%, he accepted it. He tries to deceive us."
Lim also urged Kelantan to practice prudent management of their finances as the national treasury has to loan them up to RM900 million so the state can pay its civil servants and to improve cash flow.
"Kelantan is the worst in terms of financial prudence. The federal side will help but we need the states to improve on the financial handling so it does not become a burden to them and the federal government."