Tax incentives urged for middle-class home building
Updated: 2010-08-20 05:55
By Joseph Li(HK Edition)
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Middle-class buyers can benefit from premium exemptions on low-cost homes
Housing remains the most serious livelihood issue as lawmakers, civil servants and advisory committee members continue to urge the government to do something to help ordinary people with their housing needs.
Lawmakers from Economic Synergy called for exemptions from land premium payments for developers that build small dwelling units valued at under HK$3 million.
Lawmaker Jeffrey Lam argued property prices would be much lower and more affordable to the general public, if the proposal were implemented. He added, the land premium would be attached only when initial owners resell their properties.
Lam also suggested the Hong Kong Mortgage Corporation could provide mortgage loans up to 90 percent of the cost of new housing units.
The special government loan guarantee scheme set up after the financial tsunami will expire at the end of the year. Reflecting the views of small and medium enterprises, Lam suggested improving the scheme by switching to bank guarantees and expanding the limit to HK$8 million but to make enterprises take out insurance on the loans. Enterprises should be allowed to use the loans as cash flow as well as for buying equipment, he said.
The suggestions were made to Chief Secretary Donald Tsang, as the government continued consultations on programs to be included in the coming Policy Address.
Separately, Chief Secretary for Administration Henry Tang met deputations from the youth, women and elderly service sectors and a number of civil service organizations.
After the meeting, Chan Chung-bun, chairman of Commission on Youth, said young people in Hong Kong need to enhance their competitiveness in the face of global competition. He called on the government to increase resources for functions to promote recognition of national identity because the Chinese mainland is such a vast market that provides immense development opportunities to the young people.
Chan also said it is necessary to understand the housing needs of young people, given that purchasing a home means the savings of a lifetime. Chan invited Yau Shing-mu, undersecretary for Housing and Transport, to exchange views with young people and learn more about their needs on August 31.
Leung Chau-ting, chairman of Hong Kong Federation of Civil Service Unions, said the federation proposed raising the retirement age from 60 to 65 and recruitment of more staff at lower levels. The labor organization also joined the chorus of those urging resumption of the Home Ownership Scheme and construction of more public housing units to benefit the lower grade staff.
Wat Ki-on, chairman of Disciplined Services Consultative Council, offered similar views on housing. He said that since the Home Ownership Scheme was suspended, staff could not afford to buy properties from the private market and they either live in staff quartets or public housing units.
In particular, he suggested new flats under the Home Ownership Scheme for civil servants only. If they can settle the housing problem before retirement, they can then release the staff quarters and public housing units to people in need.
The disciplined forces also called for more resources to shorten working hours and enable staff to enjoy a 5-day week. Working hours of certain jobs are up to 54 hours weekly, he disclosed.
China Daily
(HK Edition 08/20/2010 page1)