KUALA LUMPUR: Reintroducing inheritance tax will only discourage Malaysians from buying a home as an investment tool, Real Estate and Housing Developers' Association (Rehda) president Datuk Ir Ho Hon Sang said.
Ho added that such measure will only be a burden to the family's heirs.
It is particularly stifling to lower income or middle-class children of well-to-do parents who would have to bear the possibly excessive tax they are suddenly ladened with due to the property inherited.
He said residential property is one of the most valuable possessions an individual can own, and most likely than not, is the bulk of savings for majority of people.
"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, given the high likelihood of its appreciative value.
"The new owners inheriting these properties may end up having to sell their ancestral home as they cannot afford to pay the imposed tax, thus losing their home and an investment kickstarted by their deceased family, and discourage long-term ownership of properties," he said in a statement today.
Ho was commenting on the speculations surrounding the potential reintroduction of inheritance tax during 2025 Budget presentation this Friday.
While the Prime Minister and Transport Minister had denied the speculations, he said if such tax is introduced at any point in the future, residential properties should be an exemption from the new rule.
"We should be helping the rakyat own homes, instead of further limiting their options," he said.
He said the association will continue to encourage its members to uphold nation-building role of providing quality, affordable homes in a timely and sustainable manner.