Hong Kong’s Treasury Secretary Paul Chan said authorities have not ruled out reinstating real estate cooling measures if necessary.

Hong Kong’s finance secretary said the government has not ruled out reintroducing real estate cooling measures if market conditions change.

Finance Secretary Paul Chan Mopo also said on Thursday that despite facing a deficit, the city would not impose new taxes at this stage as income from land sales is expected to increase after property sales. He said there was no need to make a “progressive” move. The curb has been discarded.

In his latest budget blueprint released on Wednesday, Mr Chan surprised the market by immediately lifting all cooling measures introduced more than a decade ago to limit property speculation.

“The current and future housing supply is very sufficient, but there is very little speculative activity right now,” Chan said on a radio show, calling it the “right” time to scrap the policy.

“We can reintroduce these measures at any time if market conditions change,” he said, stressing that the government would closely monitor the market and take action accordingly.

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Hong Kong’s ballooning deficit will reach HK$101.6 billion (US$17.4 billion) this fiscal year, with fiscal reserves at HK$733.2 billion, the lowest in a decade, according to the budget blueprint.

But Chan dismissed proposals to introduce new forms of tax to balance the books, such as a land-based exit tax or reinstating the city’s red wine tax, which was abolished in 2008.

“The economy is now recovering…We need to give them some space, whether it’s businesses or residents, because they have to deal with the losses of the past few years,” he added. .

He said the tax system is a way to attract talent and investment to Hong Kong, and warned that any changes could affect Hong Kong’s competitiveness.

“At this stage, there may not be a need to take such aggressive action unless society is ready or the issue is not being discussed,” Chan said.

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He said a HK$120 air travel tax was already being collected from people leaving the city via the airport, and the government wanted people to be able to move freely across borders, especially in the capital region. He said there was no point in taxing people leaving the country by land. bay area.

Pointing to the red wine tax, Mr. Chan said that this tax was originally abolished in 2008 to develop the industry and promote the city’s tourism and catering industry, and the results were very good.

The finance minister also noted that developers want to replenish the land supply once the housing market stabilizes, and expressed confidence that curb removal will increase land sales revenue for the city.

“Once our measures to boost confidence in the stock and housing markets begin to take effect and the markets stabilize, trading volumes will begin to increase from the particularly low conditions seen during the 2023-2024 financial year,” he said. Deaf,” he said.

However, several callers expressed disappointment with Chan’s budget regarding the telephone participation program, particularly regarding the government’s plan to hold monthly fireworks and drone shows to supplement existing light shows.

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Others pointed to the reduction in payroll taxes and lamented the lack of economic sweeteners for the middle class, who have “worked hard” to boost the economy.

Mr Chan appealed for the public’s understanding of the relatively low consumption of sweeteners and stressed that the government needs to rely on tourism in the short term to strengthen the economy through consumption.

“I would like everyone to understand this point. The Hong Kong government is putting a certain amount of pressure on our country’s finances, so we are forced to make some reductions in support measures,” he said.