HONG KONG (Reuters) – The Hong Kong authorities estimates it should earn HK$35 billion ($4.52 billion) in income within the present monetary yr from the 0.1% ‘stamp responsibility’ charged on inventory transactions on account of excessive buying and selling volumes, a minister informed lawmakers.
The HK$33.23 billion earned from the levy within the 2019-2020 monetary yr ended March 31, 2020, accounted for about 5% of presidency income, Christopher Hui, Hong Kong’s secretary for monetary providers and the treasury, mentioned in a written response to a query from a lawmaker.
Common day by day turnover for securities traded in Hong Kong was 49% larger within the 2020 calendar yr than a yr earlier, in keeping with inventory alternate knowledge, aided by coronavirus-driven sharp market volatility. The native benchmark hit a 20-month excessive final month.
Each patrons and sellers of securities listed in Hong Kong are required to pay 0.1% of the worth of transactions, although sure merchandise, corresponding to alternate traded funds, are exempt.
Different main international buying and selling centres corresponding to america and Japan don’t cost such a charge.
Hui mentioned the federal government would proceed to look at the speed of stamp responsibility, given the necessity to stability authorities income and the competitiveness of Hong Kong’s inventory market.
(Reporting by Twinnie Siu and Alun John; Enhancing by Rashmi Aich)
Copyright 2021 Thomson Reuters.