OWNERS of higher priced homes in Vancouver gave a collective sigh of relief after the provincial government announced it would revoke a controversial property tax aimed at them.
The announcement came only hours before Vancouver Mayor Gordon Campbell addressed a boisterous crowd of more than 4,000 taxpayers gathered to oppose the huge surtax on homes worth more than C$500,000 (about HK$3 million).
The tax would have been assessed on a sliding scale ranging from $5 per $1,000 of value between $500,000 and $700,000 to $15 per $1,000 of value above $900,000.
The result would have been tax increases of between 30 per cent and, in some cases, as much as 200 per cent.
Leaders from the province will make an official visit to Hongkong this month to encourage Hongkong investment in Canada, and local business groups and city officials agree that a clear message has been sent to the territory.
''There would be every indication that the government is trying to find a way to redistribute wealth - not just income but wealth,'' said Hongkong Bank of Canada vice-president Mr David Bond.