Legco gets more control over double stamp duty property-cooling measure
Government makes concession amid fears stamp duty bill could fail
Lawmakers will have a chance to block any changes to a controversial property-cooling measure before they take effect after a concession from the government.
The Financial Services and the Treasury Bureau told lawmakers debating double stamp duty – under which buyers who own other properties and those who are not permanent residents must pay higher taxes – of the change yesterday.
The government has collected the tax since February last year but a bill that will formally make it law is still going through the Legislative Council.
Like most indirect taxes, it is subject to so-called negative vetting, meaning lawmakers only vote on it after implementation. But the bureau said any changes to the tax rate would instead be approved in advance.
Pan-democrats believe negative vetting gives the government too much power, and the bureau needs their votes because some usually government-friendly pro-business lawmakers fiercely oppose the tax, which they say harms economic freedom.
Democratic Party lawmaker James To Kun-sun welcomed the concession, adding: “The change is probably because of the administration’s worries about not securing enough votes.”
