Top Officials Play Down Concerns On Stamp Duty Hike

Top government officials on Sunday moved to allay concerns that the decision to increase stamp duty on stock transactions by 30 percent could harm the SAR's competitiveness as a financial hub.

Speaking on a radio show, the Secretary for Financial Services, Christopher Hui, said the proposal would bring HK$12 billion into the government's coffers each year.

Hui said commercial competition was not just about cheaper prices, but also about quality.

Hui also said Hong Kong will continue to be the link between foreign markets and the mainland.

The government said last week that it would increase stamp duty on stock transfers by 30 percent – from 0.1 to 0.13 percent of the transaction value – but ruled out raising other taxes for the time being as it focuses on reviving the ailing economy.

Separately, writing on his blog, the Financial Secretary, Paul Chan, said general traders should be able to afford the stamp duty increase.

Chan said officials had carefully considered the impact on the Hong Kong market's competitiveness when deciding on the plan, and the government would continue to monitor the situation.

He said fluctuations in Hong Kong's stock market over the past few days had been caused by external factors, and adjustments to individual stocks, particularly tech stocks.

The minister also noted that several markets in the region, such as in Tokyo and Shanghai, had also fallen in recent days.

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