Hong Kong set to unveil HK$95b budget surplus on strong stamp duty takings, says accounting heavyweight
PwC also calls for tax concessions for high-tech companies and small and medium enterprises
A leading accounting firm has urged the government to offer tax concessions to boost the high-tech sector and help struggling small and medium firms as it forecast a surplus of HK$95.5 billion in the current fiscal year, thanks to a boost from stamp duty.
The surplus – which would be the highest since the 2007-08 fiscal year – would be more than double the HK$36.8 billion previously forecast by the government.
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The accounting firm, PwC, said the huge surplus was primarily attributable to unexpectedly high stamp duty revenue, which the firm estimates will reach HK$77.4 billion compared to a government estimate of HK$50 billion.
The firm expects profits and salaries tax to bring in HK$200.8 billion and revenue from land sales to hit HK$71.5 billion.
Financial Secretary John Tsang Chun-wah is set to unveil his latest forecasts for the current fiscal year in his budget speech to be delivered on February 24.
So Kwok-kay, a tax partner at PwC Hong Kong, said: “With buoyant trading in the equity market, coupled with the rise in property transactions, we expect total stamp duty revenue to reach HK$77.4 billion.”