Decline in property and stocks transactions to blame for projected 15.5 per
A $21 billion fall in tax revenue has been forecast because of declining property and stocks transactions.
The Inland Revenue Department expects total tax revenue for the 1998-99 tax year to plunge to $114 billion - 15.5 per cent down on the previous year's $135 billion.
Lau Mak Yee-ming, a department assistant commissioner, said the biggest fall was expected in stamp duties, levied on property and stocks transactions. The revenue could drop from $29 billion to $14.7 billion.
Income from earnings and profits taxes would fall only slightly, Ms Lau said.
Although last year brought unusually high property and stocks tax revenue, the projected tax revenue for 1998-99 was expected to be lower than the 1996-97 total of $120 billion.
The number of new businesses set up last year fell 16 per cent on the previous year, from 102,016 to 85,544, according to figures released yesterday.
Commissioner of Inland Revenue Wong Ho-sang said the market had done well from April to October last year.