Hong Kong forecasts a HK$101.6 billion fiscal deficit for the current year, introducing a two-tier tax system with 15% and 16% rates to address the deficit.
Hong Kong projects a fiscal deficit of HK$101.6 billion for the current financial year, almost double the initial estimate, and plans to introduce a two-tier tax system to narrow the deficit. Financial Secretary Paul Chan announced a new standard rates regime, with income up to HK$5 million taxed at 15%, and anything above that taxed at 16%. This change will affect approximately 12,000 taxpayers, generating around HK$910 million in additional revenue annually. The government aims to consolidate public finances and work towards restoring fiscal balance.
February 28, 2024
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