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44 -
million.
The width of the two bands will thus be increased from $1 million to $1.5
The cost of this proposal will be some $50 million in 1996-97 and $240 million up to 1999-2000.
End
Relief measures to home buyers
Relief measures are afoot to home buyers, particularly at the lower to middle end of the market.
The Financial Secretary, Mr Donald Tsang, in his maiden Budget Speech to the Legislative Council today (Wednesday), proposed to reduce the impact of stamp duty to directly benefit buyers of lower and medium-value flats with property values of up to $3.5 million.
This will be of particular assistance to buyers of Home Ownership Flats and Sandwich Class Housing Scheme properties.
The proposed changes are:
The limit below which only the nominal fee of $100 is charged will be raised from $500,000 to $750,000.
The rate of 0.75 per cent will apply to properties with a value of $750,000 to $1.5 million.
The rate of 1.5 per cent will apply to properties with a value of $1.5 million to $2.5 million.
The rate of 2 per cent will apply to properties with a value of $2.5 million to $3.5 million.
The threshold at which the maximum rate of 2.75 per cent begins to apply will be raised from $3 million to $3.5 million.