The Inheritance Tax will put unnecessary burden on heirs, said Ho
PETALING JAYA: The Real Estate and Housing Developers’ Association (Rehda) Malaysia has taken note of the speculations surrounding the potential reintroduction of inheritance tax, which could be announced during this Friday’s Budget 2025 presentation by Prime Minister Datuk Seri Anwar Ibrahim. The Association believes that an inheritance tax would place an unnecessary burden on heirs, particularly on children from lower-income or middle-class families who may be suddenly faced with an excessive tax due to inherited property.
Residential property is often the most valuable asset an individual owns and, for many, represents the bulk of their savings. Rehda argues that reintroducing the inheritance tax, which was abolished more than three decades ago, could discourage Malaysians from purchasing homes as an investment. “Many citizens avoid high-risk investments and instead turn to property, which is seen as one of the safest investment options for those who can afford it, given its tendency to appreciate in value,” said Rehda president Datuk Ho Hon Sang. He further expressed concern that heirs may be forced to sell inherited properties — often family homes — because they cannot afford to pay the imposed tax, thus losing both their home and an investment initiated by their deceased family members. This could discourage long-term home ownership.
Rehda is also aware of statements made by the Prime Minister and Minister of Transport Anthony Loke, who have downplayed the likelihood of inheritance tax returning next year. However, should such a tax be introduced in the future, Rehda believes that residential properties should be exempt from the rule. “We should be helping citizens own homes, not further limiting their options,” added Ho. Rehda remains committed to encouraging its members to continue their nation-building role by providing quality, affordable homes for the people in a timely and sustainable manner.
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