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Hong Kong stamp duty
Business
Tom Holland

MonitorFour more ways officials break the spirit of Hong Kong's Basic Law

From the new discriminatory homebuyer's stamp duty to schools funding, the government is not living up to the city's constitution

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Chief Executive Leung Chun-ying addresses legislators at Legco Building in Tamar. The recent behaviour of the Hong Kong government appears to be in direct contravention of the Basic Law.

I confess I am not as familiar with Hong Kong's Basic Law as I probably should be.

I'm sure it's a worthy enough document. But 100 pages of constitutional promulgation is not my idea of an entertaining read.

South China Morning Post readers are made of sterner stuff. In the past few days, a number have written in to point out three areas in which the recent behaviour of the Hong Kong government appears to be in direct contravention of the city's mini-constitution.

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First, there is the way the government jacked up its special stamp duty last month and slapped a punitive buyer's stamp duty on non-resident purchasers of local homes.

From now on, anyone selling a residential property within six months of buying it will be hit with an extra 20 per cent tax on the sale. If you sell within a year, you will pay 15 per cent, and in less than three years, 10 per cent.

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In addition, all companies and any individuals who are not Hong Kong permanent residents buying a home in the city will now have to pay an extra 15 per cent tax on their purchase.

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