Construction industry wants a reversion to old stamp act

Construction industry wants a reversion to old stamp act

05/06/2009 The Star By Sharidan M. Ali

KUALA LUMPUR: The construction industry has called for the Government to revert to the earlier tariff scheme of the Stamp Duty Act.

Master Builders Association Malaysia president Ng Kee Leen said the increase in cost of stamp duty since the Jan 1 had resulted in the upsurge in construction cost.

“For instance, a RM10mil construction contract such as conventional construction contract or design and build contract, will now attract an ad valorem duty of RM50, 000 compared to the RM10 previously,” he told reporters at a press briefing today.

An amendment to the Stamp Duty Act effective Jan 1 has resulted in a normal service agreement without security attracting 0.5% stamp duty of the contract value.

Prior to the amendment, the stamp duty chargeable was fixed at RM10 nominal sum.