11
Thursday, March 1, 1973
NEW RATE OF STAMP DUTY ON CONTRACT NOTES
Effects Of Changes Outlined
The Commissioner of Inland Revenue, Mr. F.E. Rainbow, today explained
the effects of the changes in the Stamp Duty on contract notes, in respoct
of share transactions and on transfers relating to gift of shares or
marketable securities.
These changes were announced by the Financial Secretary in his
budget speech yesterday.
Contract note duty, he explained, was defined as that payable
on contract notes which were required by the Stamp Ordinance to be made
and executed for or by both buyer and seller whenever Hong Kong-registered
shares or marketable securities were bought or sold.
Until yesterday (Wednesday), the rate of duty was effectively-
0.2 per cent, so that duty totalling 0.4 per cent was payable on every
purchase and sale of shares.
In presenting his Budget estimates yesterday, the Financial Secretary
doubled the rate for both buyer and seller to 0.4 per cent.
This meant, Mr. Rainbow explained, that duty totalling 0.8 per
cent would now be payable whenever Hong Kong-registered shares or marketable
securities were bought and sold.
/The change ******