Hong Kong Hits Record High Tax Revenues
May 3, 2013 Taxation in Hong Kong
HONG KONG – Tax revenues in Hong Kong have reached a soaring new high, despite a slow down in the local real estate sector, an increase to tax free allowances and a decline on the local stock market.
In a press release issued on May 2nd the Inland Revenue Department (IRD) of Hong Kong revealed that tax revenues in the region over the 2012 financial year grew by 2 percent compared to the previous year, hitting a record high of HKD 242.2 billion.
The growth in tax revenues has been attributed to a 6 percent rise in collections of corporate income tax, which increased from HKD 118 billion to HKD 125 billion.
The IRD noted that collections of personal income taxes fell by 2 percent over the course of the year due to several increases to the tax allowances granted to individual tax payers.
Collection of property tax also fell by 2 percent, mainly due to recent measures taken by the government to reign in the escalating prices on the local real estate market.
Revenues from stamp duties also fell by 3 percent, due to a slow down in trading on the local stock market.
Looking forward to the 2013 financial year, the IRD forecasts that tax revenues will rise by an even further 2 percent to HKD 245.0 billion, despite the fact that the collection of property tax and stamp duty is forecast to fall even further next year.
Photo by Not Quite a Photographr