Real estate and property sector gets boost from short-term economic recovery plan

Muhyiddin addressing the country’s short-term economic recovery plan during a press conference at Putrajaya today. Photo Credit: Radio Television Malaysia (RTM).

By Adrian Lim

KUCHING, June 5: The real estate and the property sectors are expected to benefit from a slew of measures announced by the federal government.

Prime Minister Tan Sri Muhyiddin Yassin said a few taxation incentives have been prepared to stimulate the real estate market due to the impact arising from the Covid-19 pandemic.

“The Home Ownership Campaign will be reintroduced by the government.

“Through this campaign, stamp duty exemption up to RM1 million will be given for name transfer letters for properties priced from RM300,000 to RM2.5 million and 100 per cent stamp duty exemption for mortgage loan.

“The exemption is for sale and purchase agreements signed between June 1 until May 31, 2021 subject to a 10 per cent discount provided by the property developer.

“Besides, property tax exemption will also be given to Malaysians for disposal up to three properties between June 1, 2020 and December 31, 2021.

“The tax exemption is limited to the disposal of three residential houses for an individual,” Muhyiddin said when addressing the short-term economic recovery plan during a live television telecast at Putrajaya today.

Muhyiddin added that financing for the third and subsequent houses priced at RM600,000 and above will not be subjected to 70 per cent of the price but the internal risk management by a financial institution.

Meanwhile, the automotive sector also received a boost as the federal government has agreed to provide 100 per cent sales tax exemption for passenger cars which are assembled in Malaysia or cars which are termed as completely knocked down (CKD).

He added the federal government has also agreed to provide 50 per cent sales tax exemption for imported passengers’ car or completely built up (CBU).

Muhyiddin disclosed that the sales tax exemption for cars given to automotive dealers is applicable from June 15 until December 31 this year.

Hence, those who are looking to buy a new locally assembled car might be able to benefit from the lower car price as part of the initiative announced by the federal government.—DayakDaily