The former finance minister said this would help the property sector recover from the third movement control order and reduce the RM40 billion property overhang in residential units and serviced apartments recorded in 2020.

Housing and local government minister Zuraida Kamaruddin previously said she had met with the finance ministry to extend the incentives offered under the HOC.

However, Lim claimed the campaign was due to expire on May 31 after the finance ministry “refused to extend it to the end of the year due to stamp duty collection of RM500 million forgone”.

“This will be another broken promise by Zuraida,” he said in a statement.

According to Lim, the latest HOC, which was reintroduced under the National Economic Recovery Plan (Penjana) last year, would result in about RM36 billion worth of sales by the end of this month.

“Although there could be a potential loss of stamp duty revenue of some RM500 million, this amount could be recouped by corporate taxes on profits earned by developers on the aforesaid RM36 billion or more in sales revenue,” he said.

He said the legal and construction sectors would also benefit, while developers would be able to provide salaries for their employees and repay loans, leading to increased lending.

“All these economic activities will generate profits and income that will lead to more taxes collected,” he said.