Green Light, Red Light: Proposing changes to tax law during COVID-19 times – A Hong Kong experience

Abstract

By the middle of September 2022, COVID-19 has infected hundreds of millions of people and claimed over 6.5 million lives. Unexpectedly and unprecedentedly, it continues to disrupt many facets of life, economically, socially and politically. Despite its success, the need for review and reform in the Hong Kong tax system is obvious and imminent. During COVID-19 times, understandably, people turn to the governments for extra protection, welcoming subsidies and reliefs. On the other hand, timing seems not right for any new tax initiative, no matter how good intention it may have to improve the system or to prepare for the future. This paper gives a detailed account of changes to tax law proposed, passed and which have fallen through in Hong Kong during this distress time. It provides an analysis of the economic, social and political dynamics behind such success and failure. Particular emphasis is given to the proposal of a vacancy tax taking the form of amending the Rating Ordinance, which would have served for the betterment of the system but the bill was shelved before it was even deliberated in front of the full Legislative Council.