LETTER | The Covid-19 pandemic has put tremendous financial pressures not only on the low-income group but also middle-income families. 

Loss of jobs, reduced income and fear of an uncertain future are some of the immediate and long term concerns of households. The Malaysian Institute of Economic Research has estimated a loss of more than 2.4 million jobs as a consequence of this pandemic.

Clearly the financial support by the government to assist consumers to survive these difficult times is extremely limited. 

Firstly, many self-employed and daily wage workers are excluded. Secondly, the one-off aid received is insufficient to meet personal and household basic needs and consumers have to find their own means to raise cash to do so. 

Many fall-outs are expected from these economic consequences, including disposal of one’s assets to generate cash for the family. Some families might even have to sell their homes. It would be tragic but may be unavoidable to survive and ensure sustenance.

As the government is unable to provide financially for the families with an adequate support system; at the very best it should not profit from them.

Families forced to sell their homes have to pay real property gains tax (RPGT) ranging from 30 percent for properties sold within the first year to 5 percent for sale of properties after five years. This would be a tremendous burden on families. 

The 5 percent RPGT for properties sold after five years was introduced by the previous government. It should be abolished.

It is also proposed that for properties being sold beyond three years, the tax rate is further lowered to assist households being forced to sell properties to face the crisis.

It should also be noted that the economic scenario including property prices are really negative. It would be great if the family could even sell their property above the purchase price of their homes.

Fomca suggests that the households be allowed to keep whatever gains they make to help the family survive in these challenging times.

In summary, RPGT for sale of houses beyond five years should be abolished, while sale of property beyond three years should be reduced to help families struggling financially. 

The writer is president of Fomca. 

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

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