KUALA LUMPUR, 5 June 2020:
The government will give a full sales tax exemption on locally-assembled passenger cars in an effort to promote the growth of the country’s automotive industry.
This tax incentive was announced by Prime Minister Tan Sri Muhyiddin Yassin in a special address on the Short-term Economic Recovery Plan (PENJANA) broadcast live over television and radio today.
He also announced a 50% sales tax exemption for imported passenger cars for the period of June 15 to Dec 31 this year.
In an effort to stimulate the property market and provide financial relief to home buyers, the government has reintroduced the Home Ownership Campaign (HOC), featuring stamp duty exemptions as well as Real Property Gains Tax (RPGT) exemption.
Muhyiddin said the stamp duty exemption will be given on the instruments of transfer and loan agreement for the purchase of residential homes priced from RM300,000 to RM2.5 million.
However, this is subject to an at least 10% discount provided by the developer.
“The stamp duty exemption on the instrument of transfer is limited to the first RM1 million of the home price, while full stamp duty exemption is given on loan agreement effective for sales and purchase agreements signed between June 1 this year to 31 May 2021.
“Meanwhile, the RPGT exemption is for disposal of residential homes from 1 June 2020 to 31 Dec 2021,” he said, adding that the exemption is limited to the disposal of three units of residential homes per individual.
Additionally, the current 70% margin of financing limit applicable for the third housing loan onwards for properties valued at RM600,000 and above will also be lifted during the HOC, subject to internal risk management practices of financial institutions.
– Bernama