Hong Kong finance chief Paul Chan rules out capital gains tax for ‘foreseeable future’ for city
- Introduction of capital gains tax was just a suggestion brought up during the budget consultation period, Chan tells Post
- He also rejects idea of a land and sea departure tax
Hong Kong’s finance chief has ruled out the introduction of a controversial capital gains tax for the foreseeable future, saying any adjustment would affect the existing system’s competitiveness and the city’s economic conditions, as he also dismissed the idea of a departure levy.
“During the consultation period, there were many people who had different opinions. As a responsible government, we must do our due diligence,” he said on Wednesday.
“Any adjustment to our tax system impacts a number of things and we have to be very careful. For example, the competitiveness of our tax system, overall economic situation, the impact on our people and business, and business spending in Hong Kong.
“So it seems in the foreseeable future, Hong Kong does not have the conditions to implement a capital gains tax.”
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Hong Kong finance chief rules out capital gains tax for ‘foreseeable future’ for city
Noting that the city’s main rival, Singapore, did not have such a tax either, Chan reiterated that the competitiveness of Hong Kong’s tax system was definitely one of the considerations for imposing any levy.
