Six-month exemption to spur housing sector, says NEAC

The Star 02/02/2002 By CLARENCE CHUA

PETALING JAYA: The Government will waive stamp duty for the purchase of residential property build by developers registered with the Real Estate and Housing Developers’ Association of Malaysia (Rehda), the Sabah Housing Developers’ Association or the Sarawak Housing Developers’ Association between Jan 1 and June 30.

The National Economic Action Council (NEAC) said the decision was part of the Government’s strategy to stimulate and sustain economic growth by boosting the construction sector and related industries.

“This exemption exercise is a strategic move to boost growth in the housing sector, which provides significant multiplier benefits to over a hundred other linkage industries and services,” it said in a statement yesterday.

The exemption applies to sale and purchase agreements executed between the buyer and developer of residential property – houses, condominium units, apartments or flats – on or after Jan 1 but not later than June 30, 2002.

It also applies to all transactions affecting the transfer of titles of property from the developer to the buyers named in the sale and purchase agreements concluded during the period.

It covers all instruments in the nature of security executed between the purchasers named in the sale and purchase agreement and a bank or financial institution or employer under an employee housing loan scheme for money advances to finance the buying of the property.

Rehda president Datuk Eddy Chen said buyers of units in all development projects registered with the association would enjoy the stamp duty exemption.

“The developers do not necessarily have to be members of Rehda. Those who are not members have to pay higher registration fees because our credibility is at stake and we do not want the system to be abused.

“This is also for property in new development projects only,” he said, adding that he had yet to get confirmation from NEAC as to whether the waiver had a retrospective effect.

The waiver of duty would save house buyers thousands of ringgit, depending on the value of property.

Under the Stamp Duty Act, 1% of the purchase price should be paid as stamp duty for property priced up to the first RM100,000, while for those costing between RM200,000 and RM500,000, it is 2%. The stipulated stamp duty for property valued between RM600,000 and RM1.5mil is 3% while the rate from RM1.6mil and above is 4%.