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Easy to tax vacant flats if tied to rebates
Financial Secretary Paul Chan Mo-po has said policymakers are considering imposing a vacancy tax on hoarders of empty flats to tackle the housing shortage (“Tax on vacant Hong Kong flats under consideration”, March 16).
The extraordinarily low interest rate environment in Hong Kong means that the cost of keeping an empty property is relatively small for speculators and investors.
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Other cities, such as Vancouver and Melbourne, are already addressing this problem with taxes on empty properties.
The aim in Hong Kong should be to encourage investors to make these empty homes available to rent. The objection that it would be hard to enforce is easily solved.
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The government should tax all residential properties at a significantly higher rate and credit back the tax payment as an offset, either one-time against the homeowner/investor’s personal income tax bills or the taxes due on their rental income.
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