(By Leong Yuet Kam) Hong Kong has been hit in the past nine months by the Sino-US trade war and violent clashes caused by the amendment crisis. Plus, the COVID-19 epidemic broke out. So the property prices are turning down. Sek Lai-Him, the Real Estate and Construction senator, fears that the epidemic would cause a large number of negative assets in Hong Kong again. He urges the government to repeal the "strict measures" in the property market, with a specific date. Chen Fan, director of the Transport and Housing Bureau, responded in the Legislative Council yesterday that appropriate action would be taken if necessary. Chen Fan pointed out that the government launched "strict measures" in the property market at different times to address the problems at the time after careful consideration. He said the government would closely monitor the development of the property market and take appropriate action when necessary. He expressed a specific date currently proposed by the government is inappropriate since many things are developing rapidly under the epidemic. He emphasized the authorities will review the situation and handle it. According to the earlier announcement by RVD, the latest index in December last year was 378.5 points, down 1.66% monthly; In 2019, the property price index fell by 4.64% from its mid-year high to the end of the year, but there was still a gain of more than 5% for the whole year. The financial budget is about to be announced. Many developers and real estate agents in recent days have unanimously called on the government to relax the strict measures to accelerate the circulation of the property market. The suggestions include relaxing the property price upper limit for mortgage insurance to HKD20 million, relaxing the unified 15% tax for buying a second house in Hong Kong to stimulate investment intentions, relaxing the BSD tax to facilitate mainlanders to purchase home for self-occupation or renting in Hong Kong, and relaxing the SSD additional tax for selling houses within three years. Taxation Institute proposes to exempt the stamp duty for first housing customers. The Taxation Institute of Hong Kong expressed yesterday that the institute also had proposed suggestions covering multiple areas when it submitted the 2020/21 financial budget to Financial Secretary on January 24. The advice about the property market is exemption of first housing stamp duty for Hong Kong permanent resident aged 18 or above buying houses at or under HKD8 million. But the buyer or spouse should have never owned any residential property in Hong Kong and would live in the residential property for three consecutive years. The buyer has to pay exempted ad valorem stamp duty and additional stamp duty if selling the property within three years. It also suggested tax deduction for rental expenses. At the same time, it is suggested to cut the rental expenses tax to reduce the financial burden of the self-occupied occupants of the rented house. The institute recommended that taxpayers under salaries tax or personal assessment can enjoy the highest tax reduction of HKD100,000 each tax year. But it is required that the relevant residential property is located in Hong Kong and is used as the primary residence of the taxpayer. Also, the taxpayer has a valid lease agreement and rental receipt and does not participate in any rent compensation scheme. The institute also put forward suggestions for promoting economic development. They include supporting the development of new industries, strengthening the competitiveness of the tax system, establishing closer economic cooperation with the Greater Bay Area, and expanding the network of bilateral double taxation avoidance agreements. Key recommendations include providing tax concessions to regional headquarters, trade centers, asset wealth management, investment holding activities, and green industries. It hops the salaries tax allowances will be increased. At the same time, it also proposes that the salaries tax allowances be increased by 10% to 20%, the deduction of elderly residential care expenses be increased by 20%, and the maximum marginal tax rate be reduced to 15%. The budget proposal also presents several new schemes, such as additional tax deductions for companies hiring newly young employees, as well as tax deductions for rent, hospitalization expenses, and medical insurance expenses, etc. Chui Hing-Chiu, the president of the Hong Kong Taxation Institute, pointed out that, with the outbreak of the COVID-19 epidemic, the government should consider adopting bolder relief and stimulus measures. For example, the measures could include an exemption from profits tax, providing an expense tax exemption for companies that occurred during donating epidemic prevention supplies. They also could consist of offering tax incentives like deduction of excess and exemption period for companies producing epidemic prevention supplies such as personal protective equipment and disinfectant.