Hong Kong tax revenue jumps 22% to HK$458 billion

Stamp duty rose by 61 per cent as trading and property deals picked up, while profits and salaries tax also recorded solid gains

Hong Kong’s tax revenue rose by 22 per cent to HK$458.3 billion (US$58.5 billion) in the past financial year, driven by a buoyant stock market and increased property transactions.

Commissioner of Inland Revenue Benjamin Chan Sze-wai announced on Monday the provisional tax figures for the year ending March 31.

Stamp duty jumped by 61 per cent to HK$102.6 billion, profits tax rose by 20 per cent to HK$212.6 billion and salaries tax increased by 10 per cent to HK$97.7 billion.

“The volume of property transactions has increased, while prices have remained relatively stable,” Chan said. “But the largest increase relates to the stamp duty on stock transactions.”

He noted that the average daily turnover on the stock exchange rose in the latest financial year, supported by a strong pipeline of initial public offerings.

“This is a major factor contributing to the growth in our tax revenue,” he said.