Govt Willing To Study Tax On Unsold Flats: CE

Chief Executive Carrie Lam told lawmakers on Thursday that the government is willing to study whether it can impose a tax on property developers who leave completed flats idle instead of selling them.

Lam was responding to the Civic Party’s Dennis Kwok's suggestion that the government impose a vacancy tax.

Kwok said some 9,000 completed private flats remain unsold in Hong Kong.

The CE said she agreed with the lawmaker that when there is a housing shortage, no one should be using flats for speculative investments. She said the government is looking into the issue.

But she turned down Kwok’s suggestion to impose a capital gains tax on non-Hong Kong residents buying flats in the city.

Replying to the Democratic Party’s Andrew Wan's demand to take back control of private land, the CE said the government is conducting private land resumption every day.

But it couldn't be done casually as it could lead to lengthy court challenges – such as the case involving the site of the old Wan Chai Police Station which remains unresolved after more than 8 years, she said.

The CE slammed critics who suggest the government is favouring the rich and powerful.

Before we have even started discussions, you say it is collusion between the government and the rich and powerful, Lam told lawmakers. It is unfair, she added.

Federation of Trade Unions lawmaker Alice Mak asked whether Lam would give up the Chief Executive’s Fanling Lodge for housing.

The CE said if this could ease the problem, it could be listed as an option for public consultation.

Lam also said that the government is compiling a list of idle sites which may be used as temporary housing for those queuing up for a public flat – but she didn’t give a timetable.

Speaking to the media later, Wan criticised Lam for not answering his question about using the Fanling golf course for public housing.

Fellow lawmaker James To also was critical of the CE, especially her claim that she does not owe anyone any favours.

To said many of Lam's votes in the CE election came from the real sector and tycoons, and given this, it will be difficult to convince the public over the government's reluctance to resume land.

______________________________