Press Statement

Call to revert the filing of returns and the payment of Real Property Gains Tax (RPGT) to that practiced in 2007. New procedure unfair cumbersome, burdensome and has caused uncertainty.

Real Property Gains Tax was introduced in 1976 through Real Property Gains Tax Act 1976. RPGT was abolished from 1/4/2007 but was reinstated by the Government from 1st January 2010. From 1/1/2010, the Government imposed 5% tax on gains received from the disposal of a property which was acquired within 5 years.

The new RPGT rules, however, require the Purchaser to forward the returns and 2.0% of the purchase price to the income tax department within 60 days from the date of the Sale and Purchase Agreement failing which an additional 10.0% on this amount will be imposed.

These new rules are unfair, cumbersome, burdensome and has caused uncertainty for the following reasons:-

1. 2.0% of purchase price very often far exceeds the 5.0% RPGT that is imposed.

e.g. If a property acquired at RM1.0 million is sold for RM1.1 million there is a gain of RM100,000-00. A sum of RM22,000-00 will have to be paid to the income tax deposit within 60 days. The tax payable is however, only RM5,000-00. A sum of RM17,000-00 will have to be claimed back from the income tax department on a later date. From experience, it will take a long long time to claim back money from a government department. This constitute undue enrichment to the Government who does not pay interest on this additional sum paid.

2. The Purchaser or his solicitor is under a duty to forward this 2.0% of the purchase price. This placed an unfair duty and burden on the Purchaser because additional 10.0% penalty will be imposed on this amount if payment is delayed.

3. Those who will not be taxed will also be required to file form CKHT 3.

4. Getting the refund and filing of the unnecessary CKHT 3 form will cause the parties expenses and time. This is unproductive work for both the government servants and the additional staff that the solicitors and tax agents will have to employ.

5. It create uncertainty when a sale falls through. In such an event the deposit paid will be forfeited by the Vendor. The 2.0% purchase price which form part of the deposit was paid by the Purchaser to the income tax department. Will the tax department refund the amount to the Vendor or the Purchaser in the event of a dispute?

6. In the case where a sale is contingent on an event e.g the requirement for the Menteri Besar’s consent, will the 2.0% purchase price still have to be forwarded to the income tax department within the 60 days period? (one income tax officer says the 60 days period operate from the date the Menteri Besar consent is received but it is not stated in the rules. Will the Purchaser be slamned with a 10% increase if another officer interprete otherwise?)

I proposed that we revert back to the practice in 2007 before RPGT was abolished. Both Vendor and Purchaser submit their respective returns within 30 days and RPGT be paid upon the tax department issuing the notice for payment. The estimated RPGT payable be retained by the Purchaser’s solicitors until then. At least the Purchaser is entitled to the interest earned if the tax department delayed in assessing and issuing the notice for payment.

Dated this 5th day of March 2010.

DATO’ NGEH KOO HAM
Deputy Secretary General
DAP Malaysia
MP for Beruas

PR MPs' full and continued support for Anwar Ibrahim as the parliamentary opposition leader

Despite the fact that DAP now has more MPs than PKR , Anwar Ibrahim will continue to be the  parliamentary opposition leader as he has the continued support from all PR MPs.
    
While it is true that the parliamentary opposition leader 's position has often been held by an MP from the opposition party with the largest number of MPs, the parliamentary convention and procedure is that this position will be held by a person who commands the majority support of the opposition MPs.
    
In fact , Dewan Rakyat Speaker Tan Sri Pandikar Amin Mulia had on March 5 said that according to the Standing Orders of the House, a person can be made Opposition Leader even if he or she did not belong to the opposition party with the most number of seats – as long as the MP commanded majority support of Opposition MPs.

    Section 4A(3) of the Dewan Rakyat Standing Orders reads:

    “The Leader of the Opposition means, in relation to the House, that member of the House who is presently the Leader of the group in Opposition.”

All PR MPs have expressed their full and continued confidence in Anwar's leadership and support for his continuing as the parliamentary opposition leader.
   
Hence, for those BN politicians who think that the PR MPs will abandon Anwar Ibrahim as the parliamentary opposition chief,  they will be most disappointed.
    
Umno Youth chief Khairy Jama­luddin had said on March 4 that allowing Anwar Ibrahim to stay on as parliamentary opposition leader was an unusual move for Pakatan Rakyat as political convention would dictate that a person from the largest oppositions party should become the opposition leader.
    
It is obvious that Khairy has to learn more about Parliament's Standing Orders.
    
Since he has touched on the subject of political convention, is it not appropriate that  he should publicly explain why the Prime Minister has not followed Umno's political convention and has not till today appointed him as a minister or at least a deputy minister , by virtue of his position as Umno Youth chief?
    
May  be Khairy is getting impatient about not being made a minister and was trying to use the opposition leader issue to openly remind the Prime Minister about the Umno's political convention.
    
    
M. Kulasegaran
012-5034346

Can Muhyiddin pass three simple tests as to whether he is sincerely and seriously committed to Najib ‘s 1Malaysia concept?

Media Conference Statement by DAP Parliamentary Leader and MP for Ipoh Timur Lim Kit Siang at Wisma DAP Perak in Ipoh on Wednesday, Feb. 24, 2010 at 10.30am:

Can Muhyiddin pass three simple tests as to whether he is sincerely and seriously committed to Najib ‘s 1Malaysia concept?

Deputy Prime Minister, Tan Sri Muhyiddin Yassin is only half right when said that my head is “filled with problems” but half wrong when he alleged that these problems are about Pakatan Rakyat.

My head is indeed filled with problems but they are not about the Pakatan Rakyat but are compounded by the life-and-death struggle of Umno and the other Barisan Nasional component parties including MCA, Gerakan and MIC after the political tsunami of the 12th general election in 2008 and the pathetic 10-month history of Najib’s “1Malaysia” slogan and concept which may meet the fate of being the first slogan of a Prime Minister with the shortest useful life-span.

Muhyiddin’s suggestion that that I am bankrupt of ideas and his allegation that I had run out of issues to use against the government are “old hats” and “no great shakes”, as they had been thrown at me by Umno, MCA and Gerakan leaders for over four decades but to no great avail, or Umno and the Barisan Nasional would not be fighting for their political life after the March 8 “political tsunami” while the stocks of DAP and Pakatan Rakyat, whatever our problems, are on the ascendance.

Instead of making personal attacks and baseless accusations that I was laying a “trap” to “cause friction between him and Prime Minister Datuk Seri Najib Razak”, Muhyiddin should have responded to my call to him to declare whether he is the right-hand man of Najib or former Prime Minister Tun Mahathir in the Najib premiership.

It is most significant that Muhyiddin did not even attempt to deny that he is the custodian and surrogate of the Mahathir legacy in the Najib administration.

Muhyiddin also cleverly avoided the questions I had posed about his commitment to Najib’s 1Malaysia slogan and concept by claiming that he had the same stand as Najib on 1Malaysia.

This is serious. Is Muhyiddin claiming that he had Najib’s endorsement and approval for all his utterances and actions which are inimical to the realization of the 1Malaysia slogan and concept, including:

• His defense of the racist “brain washing” and indoctrination on “ketuanan Melayu” by Biro Tata Negara despite criticisms and expose of its racist, divisive and seditious content for the past two decades;

• His attempt to mitigate the Nasir Safar outrage claiming that it could have been “a slip of the tongue” when Najib’s senior political aide labeled Indians and Chinese in Malaysia as “pendatang”, alleging that the Chinese came as beggars and the Chinese women as “prostitutes”;

• His conspicuous silence when the racialist rantings of Umno executive secretary Datuk Abdul Rauf Yusoh at an Umno club function in London earlier this month was exposed; and

• His ham fisted attempt to aid and abet the inflammatory and incendiary campaign by Umno-controlled media like Utusan Malaysia, Berita Harian, government television and radio stations, playing the race and religious cards to viciously and falsely paint Penang Chief Minister Lim Guan Eng and Pakatan Rakyat Penang State Government as “anti-Malay” and “anti-Islam”.

Let me ask Muhyiddin one question point-blank: Is he aware that the Najib administration’s sincerity and seriousness about 1Malaysia is under great test in Penang – why the 1Malaysia concept is being undermined and compromised in the vicious and sustained exploitation of the race and religious card by Umno media and agents in the conspiracy to defame the Penang Chief Minister and Pakatan Rakyat Penang State Government as anti-Malay and anti-Islam?

If the people of Penang regard the 1Malaysia concept as fake and hypocritical, how can he expect the people of Sabah and Sarawak and the rest of Malaysians to have much confidence in the slogan?

As Deputy Prime Minister, Muhyiddin should be in the forefront to secure the co-operation of all MPs and political parties outside the Barisan Nasional fold to make a success of the 1Malaysia campaign, on the ground that it is a national issue and not a party agenda.

Unless the 1Malaysia concept is merely an Umno and Barisan Nasional political gimmick, Muhyiddin should have taken the initiative to approach MPs and political parties outside the Barisan Nasional to put aside all partisan differences to foster the national development of the 1Malaysia concept.

He should be meeting with Opposition MPs in Parliament to forge an all-party platform to ensure the achievement of the 1Malaysia concept at all levels of national life. But Muhyiddin has done none of this in the past ten months that he was Deputy Prime Minister.

It is the DAP which has proposed the establishment of an Opposition-headed Parliamentary Select Committee on 1Malaysia which has been met with indifference and disinterest from Muhyiddin and the overwhelming majority of Barisan Nasional Ministers.

This is really quite ridiculous as Muhyiddin and the Najib Cabinet should be persuading the Pakatan Rakyat MPs to agree to the establishment of a Parliamentary Select Committee on 1Malaysia and not the other way round!

Why is this so? Is this because the Najib Cabinet is full of Ministers who are quite skeptical about the 1Malaysia concept treating it as nothing more than political theatre not to be taken seriously?

Who are the Ministers in the Najib Cabinet who have the 1Malaysia DNA? I do not see anyone. No wonder neither Muhyiddin nor the other Cabinet Ministers comport themselves with any conviction that they are the standard-bearers of the 1Malaysia slogan and concept.

There are three simple tests as to whether Muhyiddin is sincerely and seriously committed to Najib’s 1Malaysia, viz:

• Whether as DPM he would agree to the establishment of an Opposition-headed Parliamentary Select Committee on 1Malaysia;

• Is he prepared to declare that the basis of 1Malaysia is “ketuanan rakyat Malaysia” and not “ketuanan Melayu”; and

• Is he prepared to endorse the objective of 1Malaysia as defined by the 1Malaysia Government Transformation Programme (GTP) Roadmap to create a nation where every Malaysian perceives himself or herself as Malaysian first, and by race, religion or region second – by setting the lead to be the first Umno national leader to declare that he is Malaysian first and Malay second?

If Muhyiddin cannot pass three simple 1Malaysia tests, then he should stop pretending that he is on the same wavelength with Najib on the 1Malaysia concept.

Lim Kit Siang

When will the Renewable Energy Bill be tabled in Parliament?

In his keynote address at the World Future Energy Summit which opened at the Abu Dhabi National Exhibition Centre two days ago, the Prime Minister Datuk Seri Najib Razak stressed that the challenge was to act now before it was a case of "too little, too late".

He said countries promoting energy efficiency and renewable energy, like Malaysia , should increase the breadth and depth of the initiatives taken to reflect the urgency of the challenge confronting them.

I welcome Najib's statement as he has also correctly pointed out that ""Our planet can no longer withstand man's unsustainable consumption and wastage. It's our moral responsibility to bequeath to our children a more pristine and healthy planet".

Secretary general of the Energy, Green Technology and Water Ministry Datuk Dr Halim Man had , in an opinion piece in the Star newspaper dated December 25 last year mentioned the need to put in place the Renewable Energy Act.

Dr Halim revealed that in November last year, Dr Hermann Scheer, the German parliamentarian who pioneered the Feed-in Tariff (FIT) programme in Germany was invited to Kuala Lumpur to share his experiences in driving national policies on renewable energies.

This was a wise move by the Ministry as I share the view that the FIT is seen as the most effective mechanism to drive renewable energy development aggressively.

I have long been interested in FIT programme but I was not able to raise the issue in the last Parliament sitting because my oral question did not come up.

Nevertheless, I had recently emailed to Dr Halim to enquire as to how FIT can become a reality in Malaysia .

I had also asked him when will the Renewable Energy Bill be tabled in the Parliament and which country's relevant Act is being considered.


M. Kulasegaran
012-5034346

DAP Perak Wishing You All Happy New Year 2010!

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