Date
20 January 2017
Revenue from salaries tax rose 7 percent to HK$59.35 billion, reflecting increased wages. Photo: HKEJ
Revenue from salaries tax rose 7 percent to HK$59.35 billion, reflecting increased wages. Photo: HKEJ

HK tax take hits five-year high on back of stamp duty

Hong Kong’s tax revenue surged to a record HK$301.9 billion (US$39.86 billion) in the fiscal year to March, powered by a double stamp duty intended to discourage property speculation.

The figure is up 24 percent from the previous year and is the highest since 2010, the Hong Kong Economic Journal reported Tuesday.

Stamp duty alone contributed HK$22.4 billion to the public coffers, up 80 percent from the previous fiscal year.

It was the first time proceeds from double stamp duty were booked after a lengthy legislative process following its introduction in 2013.

Profit tax remained the highest source of government income. It was up 14 percent to HK$137.85 billion.

Revenue from salaries tax rose 7 percent to HK$59.35 billion, reflecting increased wages.

The Inland Revenue Department expects tax revenue in the current fiscal year to fall 12 percent to HK$267 billion after tax concessions announced by the government in March.

The government is waiving 75 percent of profit tax and income tax – or as much as HK$20,000 of tax per company and person – among others, in a HK$20 billion tax relief.

Translation by Vey Wong

[Chinese version中文版]

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