Tax Collections Fall 4% in Hong Kong
May 4, 2016 Taxation in Hong Kong
HONG KONG – Hong Kong’s slumping property market is hurting the government’s coffers as collections of Estate Duties fall.
In a press release issued on May 3rd the Commissioner of the Inland Revenue Department of Hong Kong stated that tax revenues over the last financial year tax revenues dropped by 4 percent compared to the tax revenues over the 2014-2015 financial year.
The biggest contributor to the decreased tax collections was a drop in the revenues from Estate Duty, which reached only HKD 30 million 2015-2016, despite peaking at HKD 178.2 million in the previous year.
Drops were also seen in the collection of Stamp Duty, which fell by 16 percent to reach HKD 62 681 million, and Salaries Tax, which fell by 2 percent to HKD 57 868 million.
The decrease in collection of Stamp Duty and Estate tax was attributed to poor performance of the city’s stock market and property market, both which saw drops in the 2015-2016 financial year.
However, despite the drops, the collection of Profit Tax rose by 2 percent to a level of HKD 140 228 million.
The total tax collections for the year reached HKD 291 329.
Photo by: David Leo Veksler