FS: Don't worry about fluctuation in land revenue
Financial Secretary Paul Chan on Saturday said sufficient land supply and a relatively quiet housing market led to the administration’s decision not to sell residential or commercial land in the first quarter of this year, adding that may not be the case in the second quarter.  Speaking on an RTHK programme "Voices from the Hall," where he gathered public feedback ahead of his next budget speech on February 28, Chan said the fluctuation of land revenue in the short term was normal. “The most important thing is to continue to develop land. Even if the market is not ready yet, we can still accumulate land for future sale. When the housing market is rising and there is demand, we will immediately release land to ease the pressure of rising housing prices and assure the public that the government's land supply, especially for residential housing, is stable and sustainable,” he said. Many attendees expressed concerns about the government's financial state.  Some suggested increasing tax income, such as by raising the property stamp duty and taxes on large businesses, or introducing a tax on the profit made from the sale of stocks or real estate. The finance minister acknowledged that the fiscal situation is tight, but he also said that any changes to the tax system would need more public discussion.  He pointed the need to assess what overseas competition is doing, so the SAR does not lose out.  “For example, there is a minimum tax for large businesses being discussed globally. Once it is implemented internationally, we will follow it. We have estimated that this will bring us HK$15 billion in annual tax revenue.” Chan added that the government will also study how to increase income from different aspects, such as adjusting government service fees and increasing rates for luxury properties, as well as reducing government expenditures. With more Hong Kong residents choosing to spend in the mainland, there were also suggestions to implement a departure tax. However, Chan said that's not an easy decision to make.  “For example, if we collect money from people entering the SAR, naturally the tourism industry will be concerned. If we collect money when people go out, it will also create another problem. Will it be detrimental to the integration and exchange between Hong Kong and mainland residents? These are the things that need to be considered from all aspects,” he said.