Rehda Malaysia Warns Against Inheritance Tax, Citing Negative Impact on Home Ownership
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- 17 Oct 2024
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The Real Estate and Housing Developers' Association (Rehda) Malaysia has expressed concerns about the potential reintroduction of inheritance tax in Budget 2025, warning that it would discourage Malaysians from investing in homes.
According to Rehda Malaysia, the inheritance tax would burden family heirs, particularly those from lower and middle-income backgrounds, who would have to bear the excessive tax on inherited properties. The association urged the government to exempt residential properties from the tax if it is reintroduced.
Rehda Malaysia president Datuk Ho Hon Sang emphasized that the government should be encouraging home ownership, rather than limiting options for the rakyat. The association argued that inheritance tax would hinder Malaysians from purchasing homes as an investment tool, as many people view property as a safe and appreciating asset.
The reintroduction of inheritance tax could lead to a situation where new owners inheriting properties are forced to sell their ancestral homes due to the inability to pay the imposed tax, resulting in the loss of homes and investments started by their deceased family members. This would discourage long-term ownership of properties, Rehda Malaysia explained.
The speculation about the reintroduction of inheritance tax has been circulating ahead of the Budget 2025 presentation, although Transport Minister Anthony Loke Siew Fook has denied the possibility of reintroducing the tax.
Rehda Malaysia's concerns highlight the potential impact of inheritance tax on the property market and home ownership in Malaysia. The association's stance emphasizes the need for policies that promote affordable and accessible housing options for the rakyat, rather than imposing additional burdens on them.
