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Wednesday, July 22, 2009

Rehda, MBAM appeal against stamp duty

KUALA LUMPUR: The Real Estate and Housing Developers’ Association Malaysia (Rehda) and Master Builders Association Malaysia (MBAM) are appealing against the Government’s recent decision to apply ad valorem stamp duty of 0.5% for second-tier private as well as Government contracts from RM10 previously.

In a statement, Rehda urged the Government to abolish this imposition as it was burdening members of the building fraternity, including contractors, consultants and developers.

President Datuk Ng Seing Liong said with the stamp duty of 0.5%, a construction contract of RM10mil would now attract ad valorem duty of RM50,000 while previously only a nominal duty of RM10 per document was imposed regardless of the contract amount.

“This would definitely push up building costs,” he said.

Rehda is asking the Government to consider exempting the imposition of the new stamp duty rate on all service agreements without security including consultancy, operation and maintenance contacts.

In a separate statement, MBAM president Ng Kee Leen said the duty was exorbitant as Construction Industry Development Board also imposed a levy of 0.125% on a construction contract.

“The ruling would cost the construction industry an additional RM300mil per annum, which is burdensome,” he said.

MBAM appealed to the Government to consider reverting to the old stamp duty of RM10.

By The Star

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