Penang ready for legal suits on new housing rules PDF Print E-mail
Friday, 13 December 2013 10:40am
Image©The Sun (Used by permission)
GEORGE TOWN (Dec 12, 2013): The Penang state government is ready to face legal challenges over new housing rules which some claim to contravene the National Land Code.
The legal challenges include allowing property costing RM400,000 and below to only be sold after the fifth year of purchase and a moratorium on sale of low-cost and low-medium cost housing to be extended to 10 years from five previously.
The other rules which attracted criticism include a 3% levy on purchases by foreigners and a 2% levy on the seller of all property within three years of the date of sale and purchase.
Penang Chief Minister Lim Guan Eng said his administration was ready to defend the rules which take effect on Feb 1.
He slammed critics of the new rulings as being inconsistent with their arguments.
"I remember being criticised for not doing enough. But now they also criticise ... do also wrong, don't do also wrong," he said at a press conference today after attending a signing ceremony between Heng Lee and Co Sdn Bhd with HSC Property (Penang) Sdn Bhd.
Lim's defiant stand comes after Penang Gerakan Wanita chief Rowena Yam ticked off the state for allegedly going against the Code with the new rules.
Yam reportedly said the Code allowed buyers and sellers to transfer property without any hindrance as long as requirements were met.
She said the Penang Land Office would have to ignore the Code to implement the coming measures while questioning if the state had the authority to impose a levy since taxation was a federal matter.