Progressive property tax on cards

Hong Kong is looking at introducing progressive property rates, which will see wealthier people paying more tax, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said yesterday.

The progressive rates structure is based on the principle that those who can afford to, should pay more taxes, and specific details will be announced in due course, he told a LegCo panel on financial affairs.

Currently, the rates and government rent charged is calculated at 5 percent and 3 percent of the rateable value of the property respectively.

Hui said the issue of broadening the tax base is very sensitive and the introduction of new taxes requires multiple discussions and consensus among the community.

Hui also stated that given the prevalence of virtual assets in recent years, the government needs to amend the legislation to include provisions to prohibit unlicensed virtual asset exchanges from promoting related activities.

The city needs to develop a system in response to the changing market, Hui said, adding that the authority may allow retail investors to purchase virtual assets depending on the future development of the market.

In response to concerns that only one company listed on the local bourse's Growth Enterprise Market board last year, Hui said the government will work with the exchange to make the board function as it should.

To do so, Hui said that the government needs to boost investor confidence and build a relevant ecosystem while stressing that the government is concerned about the financing difficulties of small enterprises.

The authority is also studying the possibility of allowing Hong Kong Stock Connect southbound trading stocks to be denominated in yuan, and will examine the possibility of adding arbitrage facilities between counters so that the prices can be aligned.