Kota Kinabalu: Parti Bersatu Rakyat Sabah (PBRS) has called on the government to examine the impact of the amendment to the Stamp Duty Act 1949 on Sabah.
PBRS Deputy President, Datuk Richard Kastum, said in a statement that the amendment sought to increase stamp duty rate for property rental and lease agreements effective January 1 this year.
“From Sabah’s perspective, this move needs to be examined as it has the potential to have a major impact on the economy, home ownership and local business activities,” he said.
He pointed out that Sabah still faces major challenges in economic development, with lower household income rates and higher poverty rates compared to developed states in the peninsula.
According to him, increasing stamp duty without taking into account this reality could burden the people and slow down property development and the growth of the small and medium enterprise (SME) sector.
“In this regard, PBRS urges the government to postpone or reassess the increase in stamp duty by considering its impact on home ownership, investment, and economic development in Sabah; implement lower stamp duty rates for Sabah and Sarawak (for example, certain discounts compared to the Peninsular rate), to ensure economic fairness between regions.
“Exempt or provide rebates to low-income groups, first-time home buyers, and SMEs that are still struggling to grow in challenging economic conditions; and introduce progressive stamp duty based on transaction value and buyer affordability, so that the more affluent contribute more, while the common people are not burdened,” he said
He said, PBRS believes a fairer and more inclusive tax policy is essential to ensure sustainable economic growth in Sabah without affecting the welfare of the people.
Richard also said PBRS hopes the government will take into account the voices of the Sabahans in formulating a more balanced and comprehensive policy.
