HONG KONG tax revenue hits new record

Hong Kong total tax revenue collected in the 2012-13 financial year rose 2 percent on the previous year to a record high of 242.2 billion HK dollars (31.2 billion U.S. dollars), Chu Yam-yuen, commissioner of Inland Revenue, said Thursday. The increase was mainly caused by a 6 percent rise in profits tax, reaching 125.6 billion HK dollars. Property tax and betting duty amounted to 22.6 billion and 16.6 billion HK dollars. "The economic situation in 2011-12 was relatively good, leading to a 13 percent increase in the overall assessable profits of businesses, boosting profits-tax revenue and bringing total revenue to a record high," Chu said at a press conference. For salaries tax, a 2 percent decrease was noted because of an increase in personal allowance in 2012-13. Stamp duty dropped 3 percent on the previous year. Chu also said the stock market was weak in 2012-13 until year's- end, while the property market was vibrant for most of the year before the Hong Kong Special Administrative Region (HKSAR) government introduced demand-control measures, accounting for the performance of stamp duty and property tax. In the year ahead, Chu forecast that salaries and profits tax will rise, and the estimate on stamp duty will be cautious due to the volatile nature of the property market. Overall, a 2 percent increase is predicted for 2013-14. (1 U.S. dollar equals 7.76 HK dollars)