The legislature Wednesday passed a government-initiated bill according to which an additional stamp duty will be levied on all those who buy residential units in addition to their first one.
The government submitted the bill to the Legislative Assembly (AL) last week. The outline of the bill was passed during a plenary session on Tuesday.
The government has said that the bill aims to cool down the city’s red-hot home market.
As Chief Executive Fernando Chui Sai On had requested an urgent procedure for the debate and vote of the stamp duty bill, it was not arranged for review by any of the legislature’s standing committees before its final article-by-article debate and vote. The stamp duty bill was passed article-by-article during a plenary session Wednesday.
The bill will take effect the day after its promulgation in the Official Gazette (BO).
The stamp duty bill for residential units states that an additional stamp duty of five percent of the declared value of the respective unit will be levied on those who buy a second unit, while an additional stamp duty of 10 percent of the declared value will be levied on any other residential units purchased.
During the plenary session, several lawmakers said that the bill appeared to punish local residents who buy additional residential units. Grassroots lawmaker Ng Kuok Cheong said that some local residents choose to buy another flat in addition to their first one with the purpose of generating income during their old age by renting out the flat, which had nothing to do with property speculation.
Secretary for Economy and Finance Lionel Leong Vai Tac said during the plenum that the bill did not aim to “punish anyone”, adding that the bill aimed to curtail speculation on the home market by increasing its cost.
Leong also said that the bill aimed to make it easier for first-time buyers to purchase a residential unit.
