budget
Budget 2024: Two‑tiered standard rates regime and decreased reduction of salaries tax
- 2024-02-28
- The Young Reporter
- By: YANG Shuyi、WANG JingEdited by: Yau To LUM
- 2024-02-28
The salaries of taxpayers earning $5 million dollars or more a year will be split into two salary tax bands starting from 2024/25, Financial Secretary, Paul Chan Mau-po proposed in today’s budget speech. Their first HK$5 million will be subject to the standard rate of 15 % and any amount exceeding that will be taxed at 16%. “It is expected that the revenue of the Hong Kong Government will increase by about HK$910 million a year as a result,” Chan said. Mak Sui-choi, associate professor of the Department of Accountancy, Economics and Finance of Hong Kong Baptist University said the measure proposed is to aid the government’s financial difficulties. “The two-tiered standard rates regime will not affect the daily life of wealthy people and they account for only around 0.06% of Hong Kong’s population, which will not affect foreign talents to come and work in Hong Kong, ” Mak said. Au Yeung Tat-chor, assistant professor of sociology at Lingnan University said although it makes sense in terms of fiscal fairness to collect more taxes from those with higher annual salaries, it is not a long-term solution for the government to rely on this tax for the bulk of its revenue. “The best solution is to fundamentally change the local salary and income structure, rather than relying on such a policy,” he said. Meanwhile, Chan announced the reduction of salaries tax and tax under personal assessment for the year of assessment 2023-24 by 100%, subject to a ceiling of $3,000. That will benefit about 2.06 million taxpayers. In his speech, Chan mentioned that the basic allowance for children and newborns will remain unchanged at $130,000, unchanged from last year. Chan said that the government had taken into account the economic pressure still faced by some industries and the public, as well …
Budget 2019/20: Tax reduction and financial relief measures not to be compromised despite lower revenue
- 2019-02-27
- Politics
- The Young Reporter
- By: Vimvam Tong、Jo Ng、King Woo、Yetta LamEdited by: Rachel Yeo
- 2019-02-27
The government announced a number of financial relief measures in the budget speech today, despite a significant drop in the city's annual surplus. Salaries tax, tax under personal assessment and profits tax will be reduced by 75% with a ceiling of $20,000 this year, Financial Secretary Paul Chan Mo-po said. Mr. Chan said he is "very concerned about the tax burden on salary earners", adding that tax bands will be widened and marginal tax rates will be adjusted. "These measures aim to relieve the long-term tax burden of citizens through a structural approach and increase taxpayers' disposable income, so that they can take better care of their personal as well as family needs," he said. The government will be waiving rates for four quarters of 2019-20, subject to a ceiling of $1,500 per quarter for each rateable property, wheres last year's ceiling was $2,500. One-off relief measures from the government this year are projected to be lesser because of the reduced surplus. Mr. Chan announced the expected surplus of $58.7 billion for 2018-2019, but the government will be spending approximately $42.9 billion for 2019-2020, which is 73% of the surplus for one-off relief measures. This figure is higher than last year, when they allocated around 40% of the $138 billion surplus for relief measures. "We consider that the external environment is not very favorable, so the surplus is lower. But we do not want to scale down our commitment (towards relief measures) too much," said Mr. Chan in the press conference after the budget speech. Financial relief measures are introduced with the objectives to “support enterprises, preserve employment, stabilise economy, and alleviate the burden of citizens", in reaction to the slow economy performance caused by the US-China trade war. As for allowances, the government will also be providing extra allowances …