ACCCIM urges stamp duty exemption extension for RM500,001-RM1m properties
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has expressed its hope that the government will extend the stamp duty exemption period for properties priced between RM500,001 and RM1 million until the end of 2025. This extension would align the exemption period with that of properties valued at RM500,000 and below, which is also set to expire at the end of 2025.
ACCCIM believes that this measure will help boost sales of new properties in the RM500,000 to RM1 million price range, particularly in light of the impact of higher lending rates. The organisation also hopes that financial institutions will continue to offer attractive home mortgage packages for first-time buyers, in support of the Home Ownership Programme.
In the first quarter of 2023, Malaysia’s residential property sector saw 153,923 transactions worth RM20.9 billion, marking a 6.6% decline in volume and a 9.1% drop in value compared to the previous year. ACCCIM also suggested that all property transfers based on love and affection between spouses, parents and children, and grandparents and grandchildren should receive a full stamp duty exemption, limited to the first RM1 million of the property’s value.
This measure, ACCCIM argues, will encourage first-time home ownership and support the development of residential property, which in turn benefits other supporting industries. The stamp duty exemption is expected to lead to significant savings for house buyers, with estimates suggesting that the measures could result in savings of RM11,500 for a property priced at RM500,000 and RM21,750 for a property valued at RM1 million.
In the Budget 2023 announcement, the government implemented a 100% exemption on stamp duty for the instrument of transfer and loan agreement for properties priced at RM500,000 and below until the end of 2025. A 75% exemption was also introduced for properties priced between RM500,001 and RM1 million, effective from June 1 until the end of 2023.
