bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

sponsorType

authorLocations

authors

paywallTypes

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

factSheets

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

copyrighted

customTimezone

liveContents

Jeffie Lam

The academic tipped to be welfare minister in the next government has denied advocating a capital gains tax to help tackle the city’s growing wealth gap and says he only suggested society discuss the matter.
Dr Law Chi-kwong’s remarks in a TV show on Sunday triggered a furious backlash in political and business arenas.
Speaking at the South China Morning Post’s Celebrating Hong Kong’s Coming of Age conference on Monday, Law said: “I just want to clarify I am not favourable for anything called capital gains tax in Hong Kong although that is something.”
What hope for the poorest? Hong Kong wealth gap hits record high
The controversy stemmed from Law’s interview with TVB’s On the Record, where he said the city would need to look into tax reform to narrow the wealth gap, which has hit a historic high.
Law, a social policy expert at the University of Hong Kong, said: “I told the [host of the show]: ‘Can I say Hong Kong cannot discuss it? Maybe you can, but I do not think the government should.”
He said society should discuss the option of a capital gains tax, although he on the programme it would be highly controversial and difficult to implement.
I just want to clarify I am not favourable to anything called a capital gains tax in Hong Kong
Dr Law Chi-kwong, HKU academic
Law also floated the less contentious alternative of abolishing the 15 per cent standard tax rate, with high earners instead paying the 17 per cent marginal rate on part of their income.
But the remarks by the veteran Democrat, tipped to be secretary for labour and welfare when Carrie Lam Cheng Yuet-ngor takes over as chief executive on July 1, was slammed by pro-establishment lawmaker Jeffrey Lam Kin-fung.
He warned a capital gains tax would harm the city’s economic development and accused Law of having a limited knowledge of the tax system.
Lawmakers across political spectrum also cautioned against Law’s remarks on Monday.
Chan Chun-ying, representing the finance sector, said he disagreed with using taxation as a means to tackle poverty as the city already had a huge surplus and reserves.
Pan-democrat Kenneth Leung, a tax consultant, said a gains tax – which was complicated and unlikely to generate a large sum – was not “a good direction for the public to discuss”.
He added that many countries were considering scrapping the “unrealistic” tax. Abolishing the standard tax rate would be a less controversial option, Leung said, and might appear fairer to society as only a minority of taxpayers earning over HK$200,000 a month would be affected.
How Carrie Lam can boldly lead the change Hong Kong needs
But he stressed the need for more research and consultation on tax reform.
Lam said on Monday she planned to host a summit on new directions for taxation later this year to collate more views on two specific measures included in her election manifesto. They are a two-tier profit tax system and additional tax deductions to encourage firms to spend on research and development.
Meanwhile, Law, who is also a member of the Poverty Commission and the only pan-democrat expected to join Carrie Lam’s cabinet, said at the forum that the city’s rapidly ageing population in tandem with a shrinking labour force posed huge challenges.
Beijing’s strict capital controls are delaying belt and road project approvals
He said the government should give a hand to the working poor and elderly living in poverty, and one important task was to develop instruments to translate the assets of old people into a regular, safe and stable stream of income.
Lau Ming-wai, chairman of the Commission on Youth, said there was much room for non-government actors to play a role in alleviating poverty and reshaping the labour force.
Leong Cheung, the Jockey Club’s executive director of charities and community, said Hong Kong needed to look for smart solutions to social problems as throwing money might not necessarily help.


Hong Kong is going through the five stages of grief, before acceptance of fate as a part of China

Hong Kong extradition bill protests blurring the lines between peaceful picket and mob riot

Singapore feels for Hong Kong protesters, but won’t support violence: harmony and stability are core values

No, Hong Kong’s problems were not created by liberal studies: but unaccountable officials may have played a role

Hong Kong handover 20th anniversary

Hong Kong academic tipped to be welfare minister denies calling for capital gains tax

Dr Law Chi-kwong is a member of the city's Poverty Commission and has been tipped as a possible welfare minister in the new administration. Photo: Felix Wong

News

Hong Kong

Education

Controversy stemmed from interview in which he urged narrowing city’s wealth gap


Hong Kong handover 20th anniversary: Celebrations

Hong Kong handover 20th anniversary: Conference