Inheritance tax will be a burden to family’s heirs, says REHDA

Oct 16, 2024

KUALA LUMPUR (Oct 16): An inheritance tax will only be a burden to the family’s heirs, and particularly stifling to lower income or middle-class children of well-to-do parents who would have to bear the possibly excessive tax they are suddenly ladened with due to the property they inherited.
Real Estate and Housing Developers’ Association (REHDA) Malaysia is of the view that reintroducing the tax “which was abolished more than three decades ago, will only serve to discourage everyday Malaysians from purchasing a home as an investment tool”.
Read alsoInheritance tax ‘could help reduce wealth inequality’?
“Many of the rakyat may avoid other investments with high risk, and would choose property as it is one of the safest investment options for those who can afford it, given the high likelihood of its appreciative value,” said REHDA president, Datuk Ir Ho Hon Sang. (pictured)
“The new owners inheriting these properties may end up having to sell their ancestral home as they cannot afford to pay the imposed tax, thus losing their home and an investment kickstarted by their deceased family, and discourage long-term ownership of properties,” Ho explained.
REHDA said that it is also aware of the remarks made by the Prime Minister Datuk Seri Anwar Ibrahim and Minister of Transport Anthony Loke denying the probability of inheritance tax making a comeback next year.
“However, should such tax is introduced at any point in the future, we believe that residential properties should be an exemption from the new rule,” said the association.
“We should be helping the rakyat own homes, instead of further limiting their options,” added Ho.

Source: EdgeProp.my