'Remove spicy measures in phases, not in one go'
The Taxation Institute of Hong Kong said the government shall lift property-cooling measures in phases, instead of removing them in one go. Amid falling prices and a generally lacklustre market, there have been calls for the government to scrap the "spicy" measures when the financial secretary delivers his budget proposals next week. Speaking in a press conference on Thursday on its proposals on the upcoming budget, the institute’s tax policy committee co-chairwoman Anita Tsang struck a cautionary tone on the impact of a complete removal of property-cooling measures. “We agree that the property market in Hong Kong now is very different from a few years ago when these kinds of demand-control measures were introduced, so the institute does not object to the government considering relaxing some of these measures to a certain extent, just to test the market,” said Tsang. “But whether, at this moment, all these control measures should be removed in one go, we believe there should be further studies on this... Because it’s quite difficult to predict the impact of removing these measures, whether it can achieve its intended results or whether it will cause the property market to overheat again. “The government can always do further adjustments based on market situation." The institute proposed measures to ease the burden of taxpayers such as increasing allowances for children and elderly care. To boost government revenue, it said officials should conduct a comprehensive review on how to broaden city’s tax base and whether new taxes, such as a carbon tax, could be introduced which can also help the SAR reach its carbon neutrality goals. The institute added that the government should study new ways to attract foreign enterprises.