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Stamp duty for residential property sale
The Secretary for the Treasury will move a resolution in the Legislative Council on November 2 to extend for two years beyond December 31 the requirement under the Stamp Duty Ordinance to pay stamp duty on all agreements for sale of residential property.
A government spokesman today (Wednesday) explained the requirement was first introduced in 1992 and was extended for two years in December 1993 as one of a series of measures to curb speculation on residential property. The measure would lapse at midnight on December 31 unless it was further extended by the Legislative Council, he said.
"Genuine home-buyers are not affected except insofar as they have to pay stamp duty slightly earlier. By contrast, the cost of speculation through sale prior to assignment is significantly increased," he said.
Commenting on the need to extend the measure, the spokesman pointed out that the residential property market had softened in the past year but demand remained high.
"There is a significant risk that speculation may be rekindled if the measure is not extended.
"The resolution therefore seeks the continuation of the measure which has served as a useful tool to help curb speculation whilst not affecting genuine home- buyers," he said.
"The measure has been in place for nearly four years. It is well established and accepted by the public. It is therefore our plan to seek the views of the Legislative Council later on with a view to introducing an amendment to the Stamp Duty Ordinance to make the measure permanent.
"This will eliminate unnecessary speculation which may otherwise occur each time the expiry date of the measure approaches," the spokesman added.
End/Wednesday, October 11, 1995