The Taxation Institute on Tuesday urged Financial Secretary Paul Chan to provide more tax incentives to attract international singers and sports stars to Hong Kong.

Ahead of the budget later this month, the institute proposed a 50 percent reduction in tax rates for non-local entertainers and sportspeople, and a tax deduction of up to 200 percent for filming activities in the SAR.

Ada Ma, a council member of the institute, said these measures would boost the hotel and retail sectors and promote the new Kai Tak stadium.

"Last year we talked about a lot of entertainers or sportspeople who went to Singapore or other countries to hold concerts. And there's some debate about why they don't come to Hong Kong," she said.

"We just want to encourage them to come to Hong Kong from a tax angle, not just to compare with other countries, but we also want to promote our stadium in Kai Tak and also other businesses in Hong Kong."

The institute also suggested that the top marginal salaries tax rate be lowered to 16 percent from 17 percent, and that the standard tax rate be increased from 16 to 17 percent for those earning above HK$5 million.

Winnie Shek, the institute's president, said they would also like to see the waiving of stamp duty for first-time homebuyers for properties up to HK$6.5 million.

"It's part of the proposal that we advocate to improve the livelihood of Hong Kong general public. So the Hong Kong general public, probably the younger generation in Hong Kong, are still experiencing difficulties in buying their first home," she said.

With an estimated HK$100 billion fiscal deficit this year, the institute said it's not the best time to introduce new taxes given the uncertain global economic landscape.