Taxing land rent, lowering other taxes : the case of Hong Kong

Lok Sang HO*, Wai Chung Gary WONG

*Corresponding author for this work

Research output: Journal PublicationsJournal Article (refereed)peer-review

2 Citations (Scopus)


The purpose of this paper is threefold: to study if Hong Kong’s fiscal revenue is closely related to land rent; to assess if a fiscal regime relying on taxing land rent is good for the economy; and to explore if Hong Kong adopts a high land price policy.

In this paper, first, theoretical and conceptual exploration into the Henry George Theorem is made to investigate if a single tax regime is conceptually feasible. Second, time series econometric study investigates into the determinants of Hong Kong’s fiscal revenue and Hong Kong’s public expenditures. Granger causality tests are conducted to study the direction of causality.

Hong Kong does not have a high land price policy; it uses a multipronged approach to tax land rent, which cannot be precisely identified; its low tax regime is good for the economy and contributes to a virtuous circle: taxing land rent, low taxes, vigorous economy, higher land rent and low taxes.

This study uses a familiar methodology on a subject on a policy area that has not been studied before.
Original languageEnglish
Pages (from-to)521-533
JournalAsian Education and Development Studies
Issue number4
Early online date24 Dec 2019
Publication statusPublished - 20 Aug 2020


  • Efficiency
  • Granger causality
  • Henry George Theorem
  • High land price policy
  • Housing prices
  • Tax regime


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