When the Finance Minister in his 2022 Budget announcement stated that there will be an increase in Stamp Duty for trading in shares, the murmurs at stockbroking houses were palpable. However, the fear has been contained as the Ministry has now released more details on the remittance.
With regards to the remittance of the stamp duty on contract notes for the trading of listed shares on Bursa Malaysia. The policy decision as announced was Stamp duty set at RM1.50 for every RM1,000 or fractional part of RM1,000 of the value of the contract note of any shares of stock.
The stamp duty will now be capped at RM1,000, and this will be valid from 1 January 2022 to 31 December 2026. Bursa Malaysia lauds the move and said “On behalf of the industry, the Exchange would like to state our appreciation to the Honourable Minister and the Ministry of Finance for the agility in responding to market operating conditions.
This moderated approach to the changes on stamp duty exemplifies the Government’s attentiveness to industry feedback, and in managing the delicate balance between tax collection and nurturing growth in our capital market,” said Datuk Muhamad Umar Swift, Bursa Malaysia Chief Executive Officer. “As a market regulator, Bursa Malaysia is committed to continue engaging and collaborating with all market participants, towards creating an attractive, vibrant, and sustainable marketplace.
The move by MOF maintains the market’s regional competitiveness and attractiveness. The Exchange states that together with the Ministry of Finance it will continuously ensure that the marketplace remains an attractive destination for investors and issuers to invest and raise funds, said Tan Sri Abdul Wahid Omar, Chairman of Bursa Malaysia.
Bursa has informed participating organisations about the matter and asks all parties concerned to consult their broker if they have questions on the new stamp duty amendments.
