Exclude GST for condo management
WE do not agree with the move by the Government to impose the 6% Goods and Services Tax (GST) effective on April 1, 2015 for management of high-rise dwelling.
In New Zealand and Canada, condos and apartments are not affected with the GST. The GST is only applicable to commercial and business-oriented condos and apartments.
In Malaysia, many condo dwellers are mostly wage earners, single parents, taxi drivers, hawkers, retirees and pensioners.
The Government cannot presume that those who live in condos are those from the high-income group. This is clearly a fallacy and misconception.
Since the GST does not affect low-cost apartments, we feel that it is unfair that condos are being treated differently because both are shelters for human habitation and nothing more.
Therefore there should not be any discrimination between residents living in condos and apartments as everybody
needs a roof over their heads to sleep, revive and survive.
Today, it is an open secret that majority of condos and even low-cost apartments’ residents are facing difficulties to settle their monthly maintenance charges.
Thus if they had to pay an additional 6% for the GST, this would further aggravate their ability to pay and even more difficult for the management office to collect from the residents.
At the end of the day, the management will have insufficient fund for maintenance of the lifts, housekeeping, security services and this will cause a chaotic situation.
It is a fact that many condos and apartments do not have enough funds to repair their lifts and other facilities. Some do not have security and housekeeping services due to lack of funds.
Worst, some do not have lightings in the common property and face water disruption due to unsettled bills.
Thus if the condo management have to pay the GST to the Customs department irrespective whether the residents have paid up or not will definitely be a burden to the management office.
We urge the Finance Ministry to relook into the need for condo management offices to register and collect the 6% GST from its residents.
Source : thestar.com.my