Tax revenue hits record high in Hong Kong

Hong Kong's total tax revenue has soared to a record high of 145 billion HK dollars (18.7 billion U. S. dollars) in the 2005-06 fiscal year, up 14 percent from a year earlier, revealed latest statistics released by the Hong Kong Special Administrative Region (HKSAR) government Tuesday.

According to Commissioner of Inland Revenue Alice Lau, income from profits tax rose 19 percent over a year earlier, to 69.8 billion HK dollars, while that from salaries tax grew 10 percent to 37.5 billion HK dollars.

Revenue from property tax and personal assessment also helped to boost the entire revenue gathering with a 9 percent surge to 4. 5 billion HK dollars.

For estate and stamp duties, the revenue rose 14 percent to 1.7 billion HK dollars and 13 percent to 17.9 billion HK dollars respectively. The income from other taxes also surged 12 percent to 1.8 billion HK dollars.

However, revenue from betting duty dipped 1 percent to 11.9 billion HK dollars.

Following the strong gains in total tax revenue, Lau said taxpayers can now claim allowances for dependent parents or grandparents aged 55 to 59 while the HKSAR government has decided to raise the child allowance to 40,000 HK dollars per child from 30,000 HK dollars.

According to the HKSAR government's 2006-07 Budget, home loan interest may be deducted for 10 years of assessment instead of seven from 2005-06.

On the proposed reduction of marginal tax rates, Lau said upon enactment of the proposal, the 2006-07 provisional tax to be payable from January next year will be automatically computed with the new rates.

Source: Xinhua