A bill on the abolition of estate duty will be introduced into the Legislative Council as early as possible, Hong Kong Secretary for Financial Services &the Treasury Frederick Ma said Wednesday.

Ma added that the abolition will come into effect when the council approves relevant amendments in the laws.

In the latest FSTB & You column, posted on the Financial Services & the Treasury website, Ma said that the government intends to adopt the date of enactment of the bill as the cut-off date and the estate in cases involving deaths after that date will not be subject to estate duty.

For cases involving a time gap between Hong Kong and other places in the world, the effective time of the abolition in Hong Kong will prevail.

The secretary said the proposed abolition is more than a tax concession measure. It is primarily aimed at promoting Hong Kong's further development as an asset-management center -- an investment in the city's financial services industry and economic development as a whole.

Apart from attracting more overseas investors, the measure will help promote trading in the financial market and contribute additional revenue from stamp duty and other taxes.

"This high value-added industry fosters growth in a number of professional services, and other industries such as local real estate and the retail trade will also benefit. As a result, those who are not engaged in the financial services industry may also benefit indirectly."

Upon implementation of the proposed measure, Hong Kong will become the only major financial center in Asia that has abolished estate duty, Ma said.

He expressed the hope that the abolition will further enhance Hong Kong's competitiveness in financial services and strengthen its position as an international financial center.

Source: Xinhua