Budget ︱ The Liberal Party proposes to increase stock stamp duty Zhang Huafeng approves "Kill the only goose that lays golden eggs"

Political situation

Written by: Lin Jian

2021-02-04 11:01

The last update date: 2021-02-04 11:02

The Budget will be released next week. The Liberal Party earlier proposed to increase the stamp duty on stocks to increase government revenue.

Liberal Party leader Zhong Guobin said on a TV and TV program today (February 4) that all industries are hit by the epidemic, and only the financial market is booming. Therefore, raising the stock stamp duty is the fastest and most effective way to increase government revenue.

However, Zhang Huafeng, a member of the Financial Services Legislative Council, believes that tax increases will reduce the competitiveness of Hong Kong's financial market. He asked in the opposite direction: "How about killing the only goose that lays golden eggs?"

Zhong Guobin and Zhang Huafeng.

(Profile picture)

Zhong Guobin said that the financial market is one of the few industries that have not been hit by the epidemic. Coupled with the influence of "North Water", the stock market is very prosperous.

He quoted data as saying that the average daily trading volume in 2019 was 129 billion yuan, and the government could collect more than 30 billion yuan in stamp duty on stocks each year. Based on the current tax rate of 0.1%, if it was increased to 0.2%, it would be able to collect at least more than 30 billion yuan.

Moreover, he pointed out that the daily turnover of the stock market is more than 200 billion yuan, and the tax will be more.

Zhong Guobin pointed out that he is not worried about the impact of stock stamp duty on the competitiveness of Hong Kong's financial market. For ordinary investors, investing 10,000 yuan is only a tax of 10 yuan. Everyone "may not be taxed". I believe most of the investment Those who don’t mind taxes, "Bei Shui" do not mind even more. "It’s the stock price."

Zhang Huafeng pointed out that large and medium-sized enterprises in the industry oppose the increase in stock stamp duty.

He pointed out that the United States, Singapore, and Japan are all exempt from related taxes. In this uncertain fiscal and economic environment, competitiveness is very important. Hong Kong’s financial market cannot increase taxes if it wants to maintain its advantage. For example, increase the tax rate of 0.1%. To 0.2%, it has doubled.

He mentioned that the 0.1% tax rate looks small, but it is actually enough to deter investors and affect the livelihoods of 100,000 financial practitioners.

Zhang Huafeng also mentioned that the current daily turnover of 200 billion yuan in Hong Kong stocks is made up of derivative products, and the real profit is not as much as expected.

He pointed out that if it really helped the government to significantly increase its revenue, he would not mind raising the tax rate slightly, but he believed that the increase in stock stamp duty would reduce Hong Kong’s competitiveness and transaction volume, and that Hong Kong financial products can now be bought from overseas such as Singapore. Asked in the opposite direction: "How about killing even the only goose that lays golden eggs?"

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Budget Zhong Guobin Zhang Huafeng