Changes to stamp duty adjustment system to incorporate different approaches

The government has announced changes to its system of adjusting stamp duty levels, amid lawmakers' repeated attempts to limit its power to do so.

Secretary for Transport and Housing Professor Anthony Cheung Bing-leung yesterday said the government would adopt different legislative approaches for adjusting the 15 per cent buyers' stamp duty, introduced to cool property prices, depending on whether it would be increased, reduced or scrapped.

His announcement came just hours after executive councillors Starry Lee Wai-king and Jeffrey Lam Kin-fung made a joint proposal calling for the Legislative Council to be given sufficient time to discuss any government plan to increase the stamp duty, which applies to non-permanent residents and corporate buyers.

"We would like to keep the negative-vetting mechanism for the government to adjust the stamp duty. But we understand that the lawmakers … want a chance to discuss any plan to increase the tax," Cheung said.

Under the current system of negative vetting, lawmakers scrutinise changes only after they come into effect, which gives the government more power.

Under the new plan, the government would have to table a new bill for any proposed increase in stamp duty. Downward adjustments would remain on the negative-vetting system.

But unlike the previous legislative amendments put forth by various lawmakers on the Stamp Duty (Amendment) Bill, the latest changes will be incorporated in the form of a verbal "policy commitment", Cheung said.