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Malaysia: Inheritance tax may further dampen property market
KUALA LUMPUR: It is inappropriate to introduce the inheritance tax now despite the need for the government to widen its tax base to raise revenue, as its implementation will further dampen the property market, a real estate industry association said.
The Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector Malaysia (PEPS) said if at all the inheritance tax were recommended in the 2019 Budget, the minimum threshold should be RM10mil and the inheritance rate at 5% of RM10mil and above.
It said it understood that the government was toiling with the idea of imposing taxes like the inheritance tax and real property gains tax.
This is to tide over the shortfall of revenue from the withdrawal of the goods and services tax and the introduction of the sales and services tax, as well as to lessen the government’s debts and liabilities of RM1.087 trillion.
“However, in view of the current downside of the property cycle, the tax, if implemented, would further dampen the property market and it is inappropriate to introduce it during this period,” it said in a statement.
As for the real property gains tax, PEPS said although there was no evidence of the speculation given, the market has slowed down for the last two years.
Hence, PEPS recommends that the current real property tax structure (last revised in 2015) to be maintained until the property market stabilises. — Bernama
Source: https://www.thestar.com.my/business/business-news/2018/10/30/inheritance-tax-may-further-dampen-property-market/#gdisSMDQmkGQ6ef3.99