Hong Kong’s top 1.5 per cent contribute more than a third of city’s income tax revenue
Data shows the highest earners paid HK$22.8 billion of the city’s HK$63.6 billion in salaries tax – but some lawmakers say the richest need to pay more
Over a third of Hong Kong’s income tax revenue was paid by the top 1.5 per cent of taxpayers, according to the latest government figures, leading legislators to call for the city’s highest earners to pay more.
The top taxpayers paid HK$22.8 billion (US$2.9 billion) of the HK$63.6 billion, or 36 per cent, in tax revenue collected from salaries in the 2016-17 year, according to figures from the Financial Services and the Treasury Bureau made available to lawmakers on Tuesday.
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Some 29,200 taxpayers’ salaries were so high that they were taxed at the standard rate of 15 per cent in 2016-17.
They accounted for about 1.5 per cent of all 1.89 million salaries taxpayers, according to a document prepared by the bureau for a Legislative Council bills committee.
While more than half of the top 1.5 per cent had an annual pay of between HK$2 million and HK$5 million, bureau figures showed some 2,700 were paid more than HK$10 million.
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Hong Kong is known for its simple and low tax system. Direct tax is charged under three categories: salaries tax, profit tax and property tax.
