KUALA LUMPUR, Oct 16 – The Real Estate and Housing Developers’ Association (Rehda) has today expressed concern over speculations that inheritance tax may be reintroduced in the upcoming Budget 2025.
The association said it believes that such a tax would burden heirs, particularly those from lower- or middle-income families, who may struggle to pay excessive taxes on inherited property.
“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,” its president Datuk Ir Ho Hon Sang said in a statement here.
“The new owners inheriting these properties may end up having to sell their ancestral home as they cannot afford to pay the imposed tax,” he added, saying this would discourage long-term ownership of properties.
He added that residential properties remain a key investment for Malaysians, given the long-term value appreciation of such assets.
The association is concerned that reintroducing the tax could discourage property ownership and investment.
Rehda also noted that Prime Minister Datuk Seri Anwar Ibrahim and Minister of Transport Anthony Loke have both denied that the tax will be reintroduced next year.
However, the association stressed that if inheritance tax is introduced in the future, residential properties should be exempt.
“We should be helping the rakyat own homes, instead of further limiting their options,” said Ho.
On Sunday, Anwar conceded that taxing the rich would discourage domestic investment but gave assurance that he is open to it, after news reports that his administration could be reintroducing inheritance tax.
Anwar said Malaysia has recorded a phenomenal increase in its domestic investments alongside foreign direct investments, attributing the country’s impressive growth and success to growing interest, commitment, and confidence demonstrated by its domestic players.
Loke also said that the matter has never been discussed in Cabinet meetings.
