Taxman nets record HK$200b
Tax collections soared past HK$200 billion for the first time in 2007-08.
But the government says a raft of relief measures and a less-certain economic outlook could take a toll on the coffers this financial year.
Inland Revenue Department figures for 2007-08 show tax revenue was up 29.4 per cent - or HK$45.6 billion - to HK$200.7 billion.
Tax on corporate profits contributed HK$91.42 billion, up 27 per cent, or an extra HK$19.5 billion. Stamp duty, levied on stock and property transactions, added HK$51.55 billion, more than double the HK$25.7 billion recorded in 2006-07.
Salaries tax revenue fell by only 2.87 per cent, from HK$38.59 billion to HK$37.48 billion, despite concessions that returned up to HK$15,000 to each taxpayer.
'The increase was largely brought by our prospering economy, with a significant growth in business profits and a general increase in salary income,' Inland Revenue Commissioner Alice Lau Mak Yee-ming said. 'The very active stock market and gradually booming property market are also contributing factors.'
Insurance and property investment firms were major taxpayers.
Audits and investigations also yielded HK$2.53 billion.
Revenue in 2008-09 is expected to shrink 20 per cent, to HK$161 billion. Because of tax concessions, all revenue sources are forecast to suffer except betting duty - seen rising 1 per cent, to HK$13.13 billion. The government expects stamp duty revenue to drop 33 per cent, that from salaries tax to fall 30 per cent, to HK$26.38 billion, and the profits tax take to fall 9 per cent, to HK$83.27 billion.
