The rate of stamp duty levied on real estate transaction was reduced by one percentage point from 5 per cent, but the real estate market remained cool with no significant change, said U Khin Maung Than, the chair of the Myanmar Real Estate Services Association.
“There is no profound impact on the market with a stamp duty reduction of 1 per cent. The market remained unchanged. We will request the government to reduce more and more. The rate decreased by one third than the previous rate”, he added.
Previously, 15 per cent of the house’s value had to be paid, in maximum, when the real estate transaction was made. Starting from August 2014, 35 per cent was paid for real estate selling and buying in maximum. Real property price are still on the rise, said real estate agents.
“The real estate sales did not significantly rise, but houses worth Ks50million are being sold in suburban towns like Hlaingthaya Town in Yangon,” said U Aung Naing Thu, a real estate agent.
The Myanmar Real Estate Services Association, as associate member of the Union of Myanmar Federation of Chambers of Commerce and Industry, also has plans to hold a discussion with Vice President (1) U Myint Swe , said U Khin Maung Than.
“We will submit a report to prescribe the price per square foot of the houses across the country, reduce the income tax, pass by-laws of condominium law and formulate real estate service law submitted by Myanmar Real Estate Services Association on 8th September as soon as possible”, he added.
Although the stamp duty rate was reduced by 1 per cent on 4th June, there is no official announcement to reduce the income tax which is still being reviewed, said an official from the Internal Revenue Department.
The Union Minister for National Planning and Finance stressed at a discussion concerning real estate tax during previous month that the ministry will reduce the tax rate for the real estate market to raise its head again.
The real estate market was seen to significantly rise between 2007 and early 2014, said real estate agents.
By May Thet Hnin