PETALING JAYA: National House Buyers Association (HBA) wants the stamp duty on the third property and subsequent properties to be raised substantially to reflect the market value of the property and make speculative buying more burdensome.
“We propose the current stamp duty remain the same for the first two properties bought, and then increased to a flat rate based on the property price for the third and subsequent properties to discourage speculative buying,” said HBA secretary-general Chang Kim Loong .
The current stamp duty rate is relatively low and is the same, regardless of the number of properties held or bought.
“The government’s low stamp duty regime is being misused by speculators to accumulate multiple properties, driving up prices by creating false demand and denying genuine buyers the opportunity to buy such properties.”
Chang noted that speculation could be curbed with increase in both entry and exit cost, saying that, while the recent rise in real property gains tax (RPGT) increased exit cost, a rise in stamp duty would increase the entry cost.
When tabling of the Budget 2014, Prime Minister Datuk Seri Najib Tun Razak unveiled some proposals to stem the rise in house prices by curbing speculative buying.
Among them, he suggested that gains on properties disposed within the holding period of up to three years would incur an increased RPGT rate of up 30% while those sold after for and five years be taxed at a rate of 20% and 15% respectively.
For properties sold in the sixth and subsequent years, he said no RPGT would be imposed on citizens but companies would be taxed at 5%.
For non-citizens, Najib said RPGT would be imposed at 30% on the gains from properties disposed within the holding period of up to five years. Properties sold in the sixth and subsequent years would incur a 5% tax on gains.