The government should scrap property-cooling measures, further lower stamp duty on stock trading, and cut taxes for spirits, the New People's Party said on Thursday, adding that Hong Kong could benefit from tax reductions.

Party chairwoman Regina Ip also proposed allocating five percent of the Exchange Fund to invest in stocks from local companies to boost government revenue and shore up market confidence.

The suggestions were part of what the party had put forward to Financial Secretary Paul Chan ahead of the upcoming budget.

“Tax reduction proposals are intended to stimulate the economy. I think the government will gain a lot more, Hong Kong as a whole will gain a lot more from, say, halving of the excise duty on alcoholic drinks that have [an alcohol content of] 30 percent or above," Ip said.

"We could create a centre for sales and auction for these alcoholic drinks, just as we did for fine wine."

The party also hoped the administration would scrap the Buyer's Stamp Duty and the New Residential Stamp Duty, which were already halved from 15 to 7.5 percent, and further lower the 0.1 percent stamp duty on stocking trading.

Ip said the government should also think about cutting its expenditure and identify other avenues to boost revenue, other than raising taxes.

The party is not in favour of introducing a departure tax, she added.

“We thought it would be counterproductive. It would not create good will between ourselves, our citizens and visitors from the mainland. It would create more problems than it is intended to solve," Ip said.

The group also said the administration could consider taxing “super luxury goods”, like private jets and yachts, to push for less carbon emission and a greener environment.