Submissions and Reports

The Chamber suggests the need for a comprehensive review of the Telecommunications Ordinance to ensure that regulations keep pace with technological advancements and to facilitate the rollout of 5G mobile networks.

The second draft of the “Law of the People's Republic of China on Foreign Investment (Draft)”was released for public opinion and comment at the end of 2018. The Draft aims to boost the Mainland’s economic development by attracting more foreign capital. Most members of the Chamber generally support the provisions contained within the Draft. However, the Chamber has some concerns about whether the proposed law will apply to Hong Kong and Macao enterprises, as the Draft does not clarify this issue. In its submission, the Chamber also shared its thoughts on a number of other areas in the Draft.

The Chamber has urged the Financial Secretary to help Hong Kong prepare for economic challenges ahead and hone our competitiveness. In its submission to the Government’s 2019-20 Budget, the Chamber also reiterated that it is crucial that a proper regulatory impact assessment framework be established, and recommended replicating the preferential tax treatment for Hong Kong residents practised in Qianhai and Hengqin across the Greater Bay Area on an incremental basis.

The Chamber welcomes and supports the Government’s introduction of a bill on 14 November 2018 to implement a charging scheme for the purpose of reducing municipal solid waste. As an advocate of the polluter-pays principle, we believe that such a charging scheme would contribute to the reduction of waste at source and in promoting a greener lifestyle.

The PRC Ministry of Finance and the PRC State Administration of Taxation jointly released the Consultation Draft on the Detailed Implementation Rules of the PRC Individual Income Tax Law and the Provisional Implementation Measures of the Additional Itemized Deductible Items for public comment on 20 October, 2018. The four major local chambers jointly submitted a letter to the Ministries of Finance and State Administration of Taxation on 14 November to reflect Hong Kong businesses’ concerns and suggestions.

The Chamber supports the Government’s efforts to implement anti-tax avoidance measures for plugging the loopholes of misusing or abusing Hong Kong to obtain ORSO exemption. We also call for a proper regulatory assessment in certain areas to ensure Hong Kong’s competitiveness would not be undermined, in particular an absolute ban on new exemption applications under ORSO.

The Chamber appreciates the Government’s effort to update fire safety standards in pre-1987 industrial buildings as a means to enhance public safety. At the same time, the Chamber has pointed to the need for flexibility in the application of the standards to take into account variances in the design and structure of industrial buildings. The Chamber has also called for a review of the Code of Practice for Minimum Fire Service Installations and Equipment to better cater for technological advancements and changes in commercial use in the industrial buildings.

The Chamber supports the proposal to introduce a Known Consignor Validation Scheme in Hong Kong that is consistent with new international air cargo safety obligations. In addition to supporting the proposed implementation of third-party operated screening facilities at off-airport locations, the Chamber also suggests conferring “Known Consignor” status to shippers that are already accredited under the U.S. Customs-Trade Partnership Against Terrorism (C-TPAT) programme and/or the World Customs Organization’s Authorized Economic Operators (AEO) scheme, given the similarities in safety requirements.

In the interest of clarity and certainty, renewal of private recreational leases should be the norm unless there are compelling reasons such as non-compliance with lease conditions or overriding public interest to justify non-renewal. There are also reservations about the proposal to charge private sports clubs a higher land premium as this could jeopardize the ability of these clubs to carry on as viable entities and contribute to sports development in Hong Kong.