Jump In Profits Tax Revenue Swells Public Purse

Hong Kong saw a 20 percent increase in profits tax revenue in the last financial year, helping to boost the overall amount of tax collected to record high of HK$341 billion.

Profits tax reached a record HK$166 billion for the year 2018-19. But there was a one percent drop in salaries tax, to HK$60 billion.

The Commissioner of Inland Revenue, Wong Kuen-fai, said the record amount of profits tax was partly due to a good economic environment.

Revenue from stamp duty decreased by 16 percent, or HK$15.2 billion, to HK$80 billion.

Wong said the fall was mainly because there were no new property market control measures, unlike in previous years where fresh measures led to increased stamp duty revenue.

He said he expects the collection of stamp duty to drop further in the current financial year, because of an anticipated lower number of transactions in both the property and stock markets.