Lawmakers warn of stand against stamp duty move
Complaints from business are being heard in Legco, with some members saying they will vote down the bill if no concessions are made
Lawmakers have warned the government that they will vote against a proposal to double stamp duty on property purchases if the administration fails to make substantial changes.
Legislative councillors issued the threat after trade groups, professional and religious organisations condemned the planned bill for not making a distinction between long-term genuine investors and speculators.
Hit by a slump in property sales after the introduction of the doubling of stamp duty in February, hundreds of property agents protested outside the Legislative Council building and urged the government retreat on the "unreasonable measures".
"About 10 per cent to 20 per cent of agency firms will close down in six months as sales volumes have plunged to a level close to during Sars in 2003. If the situation persists, it will not be surprising to see more than 10,000 agents lose their jobs and more closures," said Tony Kwok Tak-leung, chairman of the Property Agencies Association.
Among the 28 deputations voicing their opposition at the Legislative Council's Bill Committee on Stamp Duty (Amendment) Bill 2013 yesterday, chambers of commerce representing thousands of foreign firms in Hong Kong criticised the extra stamp duty as wrongly targeted at companies buying offices for their own use. They said it would severely damage Hong Kong's free market economy.
Most organisations suggested the government not penalise long-term investors who buy premises for their own use and should extend the window for exemption for owners to upgrade to bigger flats from the current provision of six months to as long as 24 months. The Hong Kong Christian Council called for an exemption for charity and religious groups which also need to buy premises for their own use.