To promote sustainable urban living, aligned with the 12th Malaysia Plan, the government can provide tax relief and exemptions in certain ways which will bode well for all if implemented well, says Chan Ai Cheng, President of the Malaysian Institute of Estate Agents (MIEA), to Business Today.
She urges the government to provide Real Property Gains Tax (RPGT) relief & stamp duty exemption for secondary properties, especially.
“Because the secondary market is a key sector in the property market, for the property market to be strong, we have to have a strong secondary market because when buyers see property appreciating at price or getting returns via rentals, the interest to invest in the primary market enhances and this will, in turn, assist in addressing the overhang situation in the primary market.”
She suggests that this relief can be limited to residential properties up to the value of RM2.5million, where the stamp duty exemption (MOT) is up to a maximum value of RM1 million (RM1,000,000). Stamp duty exemptions for Loan Instruments are up to the maximum value of RM1million.
She adds that there should be further RPGT relief For Sellers. The gains arising from the disposal of residential property based on the following incentive as provided in the 2021 budget should be extended under the Program Kesejahteraan Perumahan Rakyat (PKPR) programme only limited to a maximum of three residential properties held either by an individual or a company.
She explains that extending Interest Only Loan Options of up to 5 years under the programme also will reduce potential Non-Performing Loans (NPL) and avoid systemic shock to the banking system after the expiry of the loan moratorium period.
