Deloitte China forecasts HK$50.3 billion fiscal surplus
Accounting firm Deloitte says a jump in land revenues means government will be flush enough to fund sweeteners in next budget
The government will see a HK$50.3 billion surplus by the end of March, largely because of an HK$18 billion increase in land-premium revenues, a leading accounting firm estimated yesterday.
Deloitte's latest prediction was HK$20 billion higher than its estimate in November, when it forecast only a HK$29.9 billion surplus, expecting land-premium revenues to decrease in the second half of the fiscal year.
The accounting firm yesterday called for the administration to offer a series of tax incentives when Financial Secretary John Tsang Chun-wah announces the budget on February 26. They include sweeteners for the middle class, such as waiving 75 per cent of the salaries tax - subject to a HK$12,000 ceiling - as well as stamp duty deductions for those buying a home for the first time.
"First of all, we hope [the government will seek] to develop Hong Kong's economy," said the firm's vice-chairwoman, Yvonne Law Shing Mo-han.
"We also [want] support for needy and middle-class families and salary taxpayers."
Apart from tax waivers, the firm also proposed raising the basic tax allowance from HK$120,000 to HK$126,000, as well as increasing child and dependent-parent allowances by about 10 per cent, to HK$77,000 and HK$42,000, respectively.