Tax Revenue Rises To Record HK$378.5 Billion

Authorities said on Wednesday that tax revenue in the 2021/2022 financial year rose to a record HK$378.5 billion – 14 percent more than the year before.

Inland Revenue officials said this was mainly due to a 23 percent increase in profit tax revenue to HK$167.3 billion, while income from salaries tax grew one percent to HK$75.5 billion.

Stamp duty revenue was up 12 percent to nearly HK$100 billion, officials added.

Commissioner Tam Tai-pang explained that while their data shows overall profits of enterprises dropped slightly in 2021/2022 amid the pandemic, the profits of the investment and financial services sector actually grew.

He said a number of companies had requested to delay tax payment in 2020/2021 as they expected their businesses would be hit hard, and this also led to a rise in tax revenue the following year.

Tam said inflation also played a part in tax revenue hitting a record high.

"For the past few years the economy may not be that good. But over the years, there should be some inflation factor and the growth in GDP which has brought the total tax revenue on a growing trend," Tam said.

Tax authorities estimate tax revenue for the current financial year will increase by three percent to around HK$390 billion, if the epidemic situation remains stable.

They sent out tax returns to 2.47 million individuals on Wednesday and reminded people to return them by July 2 if they are using the paper form. Those filing their returns by electronic means get an extra month to do so.

Officials also noted that people who rent their homes and don't own a property can enjoy a tax break of up to HK$100,000 this year, after Legco approved the relevant legislation.