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As a result of the proposed adjustments, the stamp duty paid on a typical $1.5 million flat under the Home Ownership Scheme will be halved, from $22,500 to $11.250.
He estimated that about 54,000 property transactions would benefit from the proposal each year. These concessions will cost $550 million in 1996-97 and $2.7 billion up to 1999-2000.
He said he had examined suggestions by legislators to reduce the impact of stamp duty on property transactions but concluded that they were not feasible.
"It is more practical to focus on reviewing the structure of stamp duty rates in order to relieve the burden on the home-buyer.
"Accordingly, I propose to reduce the impact of stamp duty in a manner which will directly benefit buyers of lower and medium-value flats with property values of up to $3.5 million," he said.
End
Owners lured to scrap old cars for fresher air
The Government proposes to offer tax relief to encourage owners to scrap their old vehicles so as to help improve air quality.
The Financial Secretary, Mr Donald Tsang, said if the owner of a private vehicle of 10 or more years old decided to scrap his old car and replaced it with a new one, he might enjoy a reduction in First Registration Tax of 20 per cent of the tax payable or $30,000 whichever was the lower amount.
"This initiative is designed to help to improve air quality by reducing the number of old vehicles without increasing the total vehicle fleet," Mr Tsang said today (Wednesday),
There are now over 40.000 private vehicles which are 10 or more years old. Most of these vehicles run on leaded fuel and are not fitted with catalytic converters.
"They are a significant source of pollution," he said.