HK Tax Revenue Up 14% In Fiscal 2003-04

by Mary Swire, for LawAndTax-News.com, Hong Kong

10 May 2004

Figures released by the Hong Kong Inland Revenue Department last week have revealed that 14% more tax revenue was collected in fiscal 2003-04 than the previous year.

According to the tax authority, the collection figures, which came to HK$106.2 billion in the year to March, were boosted by a bounce-back in corporate profits. Revenue collected on corporate profits reportedly rose by 26% year-on-year, to reach HK$48.77 billion.

However, the data additionally revealed that Hong Kong's workers are not yet feeling the benefit of the economic rebound, with salaries tax revenue falling 6% to HK$27.98 billion.

Speaking to the Hong Kong Standard, Commissioner of Inland Revenue, Alice Lau explained that:

"This was mainly due to the fall of average income per taxpayer last year. In the past, high income groups would usually enjoy benefits such as special bonuses and stock options when business turns. But this may not be the case in the past fiscal year."

The figures also revealed that the territory's tax base narrowed last fiscal year, with the number of taxpayers decreasing by 4% to 1.16 million.

Recommended