Hong Kong budget 2024-25: government should cut property cooling measures gradually rather than all at once, tax expert and lawmaker say
- Authorities urged to refrain from scrapping stamp duties in one go to avoid triggering real estate market volatility, in contrast to views from top political parties
- Calls among those made to finance chief Paul Chan ahead of budget next week, as authorities grapple with ballooning deficit and concerns over investor confidence
Carol Liu Zhaohua, president of the Taxation Institute of Hong Kong, said authorities should remove property stamp duties in phases to better stabilise the market amid falling investor confidence.
“At present buyers’ confidence has weakened so it is better to gradually scrap the property cooling measures in phases to revive the market step by step,” she told a radio programme.
Popular calls have included scrapping curbs such as a special stamp duty applied to a residential property resold within 24 months, a buyer’s stamp duty for non-permanent residents and a double stamp duty on flats for second-time purchasers. The stamp duty rates range between 10 and 20 per cent.
Liu said the government’s move to reduce certain stamp duties in October last year had failed to make a big impact on the real estate market.