'Waive Stamp Duty For First-time Home Buyers'

The Taxation Institute has suggested waiving stamp duties for permanent residents of Hong Kong who are buying their first homes.

It said the incentive should stipulate that the properties concerned should cost no more than HK$6 million and the buyers must live in them for at least three years.

The institute's president, Jeremy Choi, said these conditions would ensure that only genuine first-time buyers benefit from the plan.

"If you have a new tax incentive, there are people trying to abuse the system and find the grey area. But that should not stop us from having the tax incentive, helping the people who are in need," he said.

The institute also called for a number of incentives to be introduced for individuals and businesses to help maintain the city's competitiveness.

Its proposals for the government's upcoming budget include tax breaks for firms who set up their regional headquarters in Hong Kong, and measures to help IT companies with their research and development costs.

It said tax deductions and exemptions should also be offered to young workers, as well as businesses set up by young entrepreneurs.