In an effort to revitalize the property market, the government has introduced tax incentives by reinstating the Home Ownership Campaign.

Through the campaign, stamp duty exemptions will be granted on transfer and loan agreements for home purchases of between RM300,000 and RM2.5 million.

Prime Minister Tan Sri Muhyiddin Yassin said the stamp duty exemption on the deed of transfer is limited to the first RM1 million worth of the house while the full stamp duty exemption is provided on the loan agreement.

"This exemption will be in force for the sale and purchase agreement signed from June 1, 2020 until May 31, 2021 subject to the terms of giving a discount of at least 10 percent by the developer," he said in his special address on the Special Short-term Economic Recovery Plan (ERP) here on Friday.

In addition, the Prime Minister said the Property Gains Tax Exemption would also be granted to individuals of Malaysian nationality on the disposal of residential houses made from June 1, 2020 until December 31, 2021.

He said the exemption would be limited to the disposal of three residential units only for each individual.

"In addition, the financing limit for third home loans worth RM600,000 and above will no longer be subject to 70 per cent of home value, during the Home Election Campaign program, subject to the financial institution's internal risk management," he said.

In a similar development, Muhyiddin said the government is imposing a 100 per cent sales tax exemption on the sale of passenger cars assembled locally.

In addition, he said a 50 per cent sales tax exemption is given on imported passenger cars.

He said the tax exemption would start from June 15 to December 31, 2020.