KUALA LUMPUR, October 23 — The government has proposed to provide stamp duty exemption on Shariah financing instruments.
Prime Minister Datuk Seri Najib Tun Razak, in tabling the Budget 2016 in the Dewan Rakyat Friday, said this is to further encourage Shariah financing and to reduce cost of home ownership.
“It is proposed that the 20% stamp duty exemption be extended for another two years,” he added.
The budget proposes the exemption to be given to the targeted sector on the principal or primary instrument of financing in accordance to the Shariah for home financing products approved by the Shariah Advisory Council of the Bank Negara Malaysia or the Shariah Advisory Council of the Securities Commission Malaysia.
Stamp duty exemption on additional instruments, executed in accordance to the Shariah principles to ensure tax neutrality between conventional and Shariah financing, is given effective from Sept 11, 2004.
In addition, a 20% stamp duty exemption on the principle or primary instrument of financing, in accordance to the Shariah principles to encourage the development of Islamic financial sector, is given effective from Sept 2, 2006 until December 31, 2015.