Media statement by DAP ADUN for Kampung
Tunku Lau Weng San on 30th June 2016 in Petaling Jaya:
I find it enormously absurd when the
Federal Government lately announced that there will be various tax breaks for
Bandar Malaysia projects when millions of genuine Malaysian housebuyers and
vendors have to pay various taxes when they transact.
The multi-billion ringgit
Bandar Malaysia township is located at the old Sungai Besi Airport. The
development is expected to house the Kuala Lumpur-Singapore High Speed Rail.
The tax breaks include an eight-year waiver on stamp duties, Real Property
Gains Tax and withholding tax.
In addition to that, the
master developers and Bandar Malaysia subsidiaries will also enjoy a10-year
income tax breaks and import duty exemption on selected construction materials.
Therefore, it is equally absurd when the
master developers of Bandar Malaysia and its subsidiaries are entitled to
various tax breaks while many other developers, many of them are medium-size
developers are unable to enjoy such tax breaks.
Such tax breaks will only benefit those
who are already very rich, including potential foreign investors and buyers
from China and other countries, while many other Malaysians vendors,
housebuyers and small and medium-scale developers have to pay diligently their
fair share of their taxes to the Federal Government, on time!
Why such preferential treatment to
Bandar Malaysia? Is it because of the fact that the Federal Government has
taken over the 1MDB's remaining 40% stake in the development project? (1MDB
sold the other 60% to Iskandar Waterfront Holdings (Johore state government
hold 40% of its share) and its partner, state-run China Railway Engineering
Corp, for US$1.7billion last December as part of a sale of land and power
assets to cut 1MDB's debt).
Will the government mandate
the developers to build sufficient percentage of low cost and affordable homes
for city-dwellers in Bandar Malaysia? Or it will become another hideout enclave
for the super-rich community?
This is another example of
how the fiscal policy of the Federal Government misplaces its priority.
Lau Weng San
ADUN Kampung Tunku
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