Stamp duty for developers to remain in place

The government will maintain its new buyer’s stamp duty on local corporate buyers of flats, the housing minister said on Tuesday.

Speaking to reporters after an Executive Council meeting where the issue was discussed, Secretary for Transport and Housing Anthony Cheung Bing-leung said the levy would not be lifted for local companies.

Developers have sought an exemption, for Hong Kong-registered companies, from the 15 per cent stamp duty that is now charged on flat purchases. It affects corporate buyers as well as non-permanent residents.

Cheung made the announcement while standing beside Chief Executive Leung Chun-ying.

Cheung said exempting local corporate buyers would create a substantial loophole in the measure.

However, Cheung said there would be some exemptions for companies that acquire old buildings for redevelopment.