How reviving Hong Kong’s inheritance tax could help restore equality and social mobility

Philip Marcovici and Stefano Mariani say returning the duty on inheritance to 8 per cent – instead of its current zero – would be an important step in reversing the concentration of wealth into fewer hands

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A woman exercises on the terrace of one of seven luxury units situated at 28 Barker Road, an exclusive residential area of The Peak, in Hong Kong. Photo: EPA-EFE

Published: 11:45am, 4 May 2018Updated: 6:16pm, 4 May 2018

Controversies over scarcity of land and slowing social mobility are symptoms of deeper malaise in Hong Kong’s economy.

It may not appear evident at first, but income inequality in Hong Kong – among the highest in the developed world – arises in part from an inequality more difficult to quantify: of wealth.

Wealth can be understood as accumulated capital. Assets such as property, investments, collections of antiques, etc accumulate in value, and in Hong Kong wealth is concentrated in the hands of a small minority.

Wealth, in itself, is good – desire for wealth and drive to improve one’s conditions were crucial in enabling Hong Kong’s post-war economic miracle.

The popular television drama Below the Lion Rock framed Hong Kong in terms of mobility and ambition, portraying the spirit of an age of apparently boundless potential.

One in seven in Hong Kong is a millionaire as property and stock market rallies boost wealth

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