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Paul Chan
Hong KongHong Kong Economy

Waive property stamp duty, Hong Kong tax professionals urge

Predicting fiscal surplus as high as HK$80 billion this fiscal year, industry professionals also seek deductions for hiring youngsters to spur economy

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Hong Kong finance chief Paul Chan is to deliver his first budget speech to the city later this month. Photo: Felix Wong
Phila Siu

With sufficient fiscal reserves in the public purse, the Hong Kong government should waive the property stamp duty for first-time home buyers and offer tax deductions for companies hiring young people, a group of local tax professionals has suggested.

In predicting the fiscal surplus would be between HK$70 billion and HK$80 billion in the current financial year, the Taxation Institute – representing more than 2,700 tax professionals – also suggested the city’s tax base be broadened.

In a letter to Financial Secretary Paul Chan Mo-po, the institute said the general public was still finding it difficult to buy their first home despite the government’s introduction of “anti-speculation measures such as [an] increase in ad valorem stamp duty, special stamp duty and buyer’s stamp duty” in recent years amid soaring property prices.
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It called for criteria to be adopted for a stamp duty waiver: only buyers or their spouses who did not own any residential properties in Hong Kong would be eligible; a home’s market value could not exceed HK$6 million; and buyers must be permanent residents aged 18 or older.

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The buyers would also be required to reside continuously at the property for three years.

The institute further suggested the government grant tax deductions to companies hiring young people aged between 18 and 25.

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