Lawmakers have urged the government to offer tax incentives and adopt a "pay for what you build" model to attract investment to the Northern Metropolis, ahead of Chief Executive John Lee Ka-chiu's policy address on Wednesday (Sep 17).
The proposal arose from the concern that no large enterprises have been introduced so far, despite the city leader's urging to accelerate the development of the area.
According to Sing Tao Daily, the sister publication of The Standard, lawmaker Jeffrey Lam Kin-fung suggested the government adopt creative approaches to attract enterprises in high-tech industries, green finance, and high-end manufacturing, such as providing incentives on land costs and taxes.
The Business and Professionals Alliance for Hong Kong -- the political party Lam represents -- also proposed a five-year tax-free period covering corporate profits tax and salaries tax to reduce risks for enterprises' substantial investments for the Northern Metropolis.
Lam acknowledged that the incentives would pose a burden on government expenditure, but believed that the authorities should focus on long-term benefits such as employment, consumer spending, and future tax revenue.
DAB's lawmaker Edward Lau Kwok-fan suggested applying the "pay for what you build" approach, allowing developers to pay a premium for lease modifications, which is not based on the maximum floor area but is determined according to the actual construction floor area.
Lau further emphasized the need for policy flexibility, such as allowing enterprises to construct temporary structures initially, to accelerate the implementation while maintaining adaptability for future development.
In addition, the chairman of the Executive Committee of Real Estate Developers Association Stewart Leung Chi-kin suggested that investment should not come solely from Hong Kong and expressed hope that the government would introduce policies to attract oversea real estate developers, specifically those from the Middle East.
The government has launched plans to establish four New Development Areas, including Kwu Tung North, Fanling North, and San Tin Technopole, as well as three pilot areas of large-scale land disposal.
The tendering process for three pilot areas, including Hung Shui Kiu and Fanling North, is scheduled to commence in the fourth quarter of this year.
