Hong Kong stamp duties hit HK$3b in June, highest in 7 months
The 7-month high in revenue from stamp duties indicate no sign of residential property investment slowing, despite government controls to curb soaring prices
Investments at home and from abroad for Hong Kong homes have showed no sign of slowing as the government’s revenue from extra stamp duty – aimed to cool the property market – rose to a seven-month high of HK$3 billion (US$384 million) in June, according to official data.
The Inland Revenue Department announced on Tuesday that income from buyers’ stamp duty (BSD) and double stamp duty (DSD) amounted to HK$2.98 billion last month.
Among them, tax revenue from DSD surged 37 per cent to HK$2.22 billion in June, compared with HK$1.62 billion in May.
Revenue from BSD jumped 60 per cent to HK$736 million in June, the highest since April, according to the data.
To curb speculation, the government introduced in February 2013, a double stamp duty of as much as 8.5 per cent for buyers of second homes or for purchases through a company.
In November 2016, the government raised the DSD to 15 per cent for all residential purchases, except for first-time buyers, as part of its efforts to dampen soaring home prices.
However, the June data will not reflect the last increase in DSD as the new rule is still awaiting for the Legislative Council’s approval.