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Vivian Au

Hong Kong’s tax revenue increased by about 10 per cent in the past financial year, driven in part by an influx of talent and a boost in property transactions, authorities have said.
Commissioner of Inland Revenue Benjamin Chan Sze-wai on Friday also predicted a 7 per cent rise in overall collections for the 2025-26 financial year.
The city recorded HK$374.5 billion (US$48.3 billion) in tax revenue for 2024-25, an increase of HK$32.5 billion from HK$342 billion in the previous financial year, according to provisional figures released by the Inland Revenue Department.
Income from salaries tax, representing 24 per cent of the total revenue, increased by 11 per cent from HK$79.9 billion to HK$88.9 billion.
“The increase in the number of taxpayers and also their income levels are reasons for the increase in tax revenue,” Chan said.
He explained that the rise in the number of taxpayers was partly due to schemes launched by the government to attract talent to the city.
Chan added the stock and property markets had been thriving since February, which could increase stamp duty collection for the 2025-26 financial year.
Stamp duty collection increased from HK$49.1 billion in 2023-24 to HK$63.9 billion in the past financial year, a 30 per cent rise.

Profits tax, which accounted for about 47 per cent of total revenue in the past financial year, also increased by 4 per cent to HK$177.7 billion from HK$170.5 billion.
When asked about how geopolitical tensions would affect Hong Kong’s economy, Chan said the government was paying close attention to the US-China trade war and assessing its impact on the local economy, businesses and taxpayers.
Hong Kong Exchanges and Clearing, the operator of Asia’s third-largest stock market, announced on Wednesday its first-quarter profit had hit a record high of HK$4.08 billion, thanks to more listings and increased turnover.
Lawmaker Edmund Wong Chun-sek said recent government measures to attract talent could be a reason behind the increase in the number of individual tax returns issued.
“Hong Kong, as an international financial hub with a simple and low tax system, can attract high-quality talent,” he said.
But Wong warned that the US’ disregard for commercial operating rules and imposition of tariffs could negatively impact the government’s tax revenues, urging the government to respond and offer businesses timely assistance amid the trade war launched by the administration of United States President Donald Trump.
Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, said the government was banking on more income tax and stamp duty to reduce fiscal pressure.
But he added revenue from corporate tax could be unstable, with pressure on profitability due to higher costs and global uncertainties.
Hong Kong was still a long way from returning to a fiscal surplus due to the continuous rise in government expenditure, he warned.
Last month, finance chief Paul Chan revised the city’s deficit for the previous financial year to HK$80.3 billion, 8 per cent lower than an earlier estimate, attributing the change to increased stamp duty income on stock trading and lower-than-expected departmental expenditure.
The government said expenditure and revenue amounted to HK$753.2 billion and HK$564.9 billion, respectively, for the year ended March 31.
The Census and Statistics Department announced on Friday that first-quarter gross domestic product expanded by 3.1 per cent, year on year. Financial Secretary Paul Chan Mo-po earlier predicted the economy would expand by 2.9 per cent on average a year in real terms from 2026 to 2029.


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People wait in line at the Inland Revenue Centre in Kai Tak. Hong Kong recorded HK$374.5 billion in tax revenue for 2024-25. Photo: Edmond So

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The Inland Revenue Department reports an HK$18.3 billion fall in tax income to HK$360.2 billion. Photo: Fung Chang

(From left) Leung Kin-wa, the deputy tax commissioner (operations); Tam Tai-pang, the tax commissioner; and Benjamin Chan, the deputy tax commissioner (technical). Photo: Edmond So

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News

Hong Kong

Hong Kong Economy

City records HK$374.5 billion in tax revenue for 2024-25, an increase of HK$32.5 billion


City records HK$374.5 billion in tax revenue for 2024-25, an increase of HK$32.5 billion.


Hong Kong property

Paul Chan