Hong Kong should cut stamp duty by more than half for residents buying additional home, city’s largest political party says
- Democratic Alliance for the Betterment and Progress of Hong Kong says stamp duty on purchases of additional homes should be cut from 15 per cent to 6 per cent
- Party also floats ideas for boosting population, including offering subsidies for pregnant women and couples with newborns
Hong Kong’s largest political party is urging the government to cut by more than half the stamp duty that residents must pay when buying an additional home, as a way to boost the sluggish property market.
The Democratic Alliance for the Betterment and Progress of Hong Kong (DAB) also proposed a series of measures to tackle the city’s population crisis on Thursday, such as providing a one-off HK$10,000 (US$1,275) subsidy for couples with newborns and another HK$20,000 for pregnant women.
The party proposed slashing stamp duty from 15 per cent to 6 per cent that permanent residents must pay when buying an additional home. DAB lawmaker Holden Chow Ho-ding said many people had long wanted to buy another property but hesitated because of the “hefty” tax.
Raise Hong Kong’s storage time for eggs, sperm and embryos to 55 years: Regina Ip
“By reducing the percentage of the stamp duty, we would be able to stimulate a profit [out of] the property market [and] to cater to the demand of Hong Kong residents,” he said.
The Financial Secretary’s Office said in a reply to the Post that the stamp duty primarily accorded with the needs for permanent residents for housing as supply was “still tight” in general.
The government had been “closely monitoring” developments in the residential property sector and would consider various factors, including market sentiment and future housing supply, when it came to the adjustment of measures, it added.
The proposals were among 88 suggestions the party submitted to Chief Executive John Lee Ka-chiu ahead of his second policy address, which is set for October 25.
The party also proposed exempting overseas talent purchasing properties in Hong Kong from paying the buyer’s stamp duty and only requiring them to pay the tax if they sold the flat and left the city within their first seven years of arriving.
Non-permanent residents buying their first property in the city must pay a 15 per cent stamp duty.
“The 15 per cent stamp duty really seriously affects their ability to manage their own cash flow,” Chow said, stressing the suggestion was in line with the government policy to attract international talent.
Hong Kong should also lower stamp duty on trading securities to “revive” the stock market and increase liquidity, the party said, but stopped short of giving a figure for the decrease.
Hong Kong politician Starry Lee to quit as DAB leader after 8 years in role
Financial Secretary Paul Chan Mo-po earlier said the government had not ruled out a cut after mainland China halved stamp duty to 0.05 per cent on its bourses, but emphasised “multiple efforts” were needed.
Among the proposals for helping the city to boost its low birth rate, the DAB suggested implementing flexible working hours and providing subsidies of HK$10,000 to couples with newborns and HK$20,000 to pregnant women.
The party also proposed setting up a savings fund that would gather contributions from the government, families and third parties for long-term planning for children’s futures.
2 Hong Kong primary schools to merge as shrinking student population takes toll
The latest census data shows the number of babies born in Hong Kong between June 2022 and the same month this year had dropped to 32,600. The figure for the preceding 12 months was 35,100.
Authorities could also consider allowing more non-locals into the city’s tertiary education institutions to tackle the declining student population, the party said.
City leader Lee had earlier called the decline in student numbers a “long-term” trend.
DAB vice-chairman Gary Chan Hak-kan said proposals from his party lined up with the government’s policy direction.
“Even if they may not be able to be included in the coming policy address at once, I believe that their long-term implementation is only a matter of time,” he said.
Separately, Chan said the party’s fundraising banquet would proceed as scheduled on Friday evening, despite recent controversy over a lavish farewell dinner for a middle-ranking civil servant.
He said it had been well-recognised tradition for the DAB to hold fundraising banquets and the donations would be used to support its district work, distinguishing it from regular networking parties.
City leader Lee and Zheng Yanxiong, director of the central government’s liaison office in Hong Kong, are expected to attend the event.
