Tax Revenues Rocket in Hong Kong

May 5, 2015 Taxation in Hong Kong

HONG KONG – Tax measures aimed at cooling the property market in Hong Kong have resulted in an unprecedented rise in tax revenues.

On May 4th the Commissioner of the Inland Revenue Department Wong Kuen-fai announced that the collection of tax revenues in Hong Kong have reached a five year high.

The total tax collections for the 2015 fiscal year were HKD 301.9 billion, a level approximately 24 percent higher than in the previous year.

The spike in the collection of tax revenues has been attributed largely to an increase in the revenues gathered from the collection of stamp duty on the sale of properties, which rose by 80 percent to hit HKD 74.8 billion, after the duties were hiked in order to reign in the city’s escalating property market.

It was noted by the Commissioner that the government initially expected the total tax revenues for the year to drop by 0.3 percent compared to the previous year.

He added that the national economy is small by open, and the economic performance, and subsequently tax revenues, can be heavily influenced by external factors.

Photo By: Barbara Willi