HONG KONG: The Hong Kong stock exchange reached a two-month high amid talk of a cut to the tax burden on trading activity. Citing a source privy to the discussions, Bloomberg said a representative from Hong Kong Exchanges and Clearing Ltd. had discussed with Hong Kong’s new Chief Executive, Carrie Lam, a rethink of the tax environment for traders and listed companies.
Bloomberg reported that a spokesperson for the Financial Services and the Treasury Bureau had said the stamp duty is a “steady revenue source” for the Government and any proposal to reduce or remove it would require “careful examination.” All securities listed on the Exchange are subject to a stamp duty at a rate of 0.1 percent on the value of the transaction (rounded up to the nearest dollar), levied on both the buyer and the seller.
