The Government welcomed the passage of the Stamp Duty (Amendment) Bill 2023 by the Legislative Council today.
The bill gives effect to a proposal on stamp duty in the Budget which adjusts the value bands of ad valorem stamp duty (AVD) payable for sale and purchase or transfer of residential and non-residential properties (Scale 2 rates).
Secretary for Financial Services & the Treasury Christopher Hui said the proposal is aimed at easing the burden on ordinary families of purchasing their first residential properties, particularly small and medium residential units.
After the adjustment to the value bands of AVD at Scale 2 rates, the stamp duty applicable to the property transactions with amount or value of consideration between $2 million and below $10.08 million will be reduced, with the reduction amount up to $67,500.
The Government noted that the adjustment will benefit around 37,000 property buyers and reduce its tax revenue by about $1.9 billion a year.