Exemption of stamp duty on property ends on Dec 31

The Star  10/05/2001 

THE exemption of stamp duty on purchases of property took effect on March 28 this year, said Deputy Finance Minister Datuk Chan Kong Choy.

The exemption would, however, apply only to properties which have already been completed and purchased from registered developers, he said. In such cases, the property would have a certificate of practical completion.

"For buyers to benefit from the exemption, developers would have to be registered under either the Housing Developers  Association of Malaysia, Sabah Housing Developers Association or Sarawak Housing Developers Association," he told a press conference in Kuala Lumpur yesterday.

The exemption, announced on March 27, ends on Dec 31. It is part of the government's RM3bil stimulus package to boost the economy while cushioning the anticipated effects of the US-led slowdown.

The types of property eligible for exemption include residential homes, condominium units, apartments and low-cost flats, office lots including shop houses and shop offices and industrial property including factories.

"The government hopes the move would help reduce the current overhang in the property market by 10% to 15%," he said.

These percentages, Chan said, would translate into an estimated RM4bil worth of property out of the overhang of properties currently valued at over RM29bil.

On whether the value of the property would be a consideration in granting of the exemption, Chan said there were no such limits.

Previously, buyers were required to pay stamp duties based on the value of the properties.