Remove GST on affordable homes, says Jagdeep

Penang exco Jagdeep Singh Deo says the amount paid for GST could be used to build more affordable homes.

GEORGE TOWN: The amount of goods and services tax (GST) paid by the Penang government on affordable housing projects could have been used to build another 1,350 low-cost homes, executive councillor Jagdeep Singh Deo said today.

Jagdeep said the state government had paid over RM160 million in GST for 11 affordable housing projects in Penang.

He added that the GST was an extra burden on the state government which was already paying another RM1 billion in development costs for affordable housing projects.

“It is okay for us to pay RM1 billion for affordable housing projects… but what I am against is paying GST for affordable homes,” he said at the Penang DAP headquarters here today.

Jagdeep also said the federal government should have exempted affordable homes from GST.

According to him, 25,555 units of affordable housing have been completed to date, while about 90,000 units are in various phases of construction.

Another 30,000 units of affordable homes have been approved for construction, he added.