Budget 2023-24: ‘Happy Hong Kong’, tax breaks and an eye on sin – 6 takeaways from Paul Chan’s latest financial blueprint
- Financial secretary sets sights on higher taxes for smokers, while Hong Kong Jockey Club will pay an increased betting duty
- Chan also unveils cheaper stamp duty for permanent residents buying small to medium-sized flats for first time
Financial Secretary Paul Chan Mo-po unveiled his annual budget blueprint for Hong Kong on Wednesday with the city seeking to recover from the Covid doldrums, as he spelled out his “moderately liberal” fiscal stance for the coming financial year.
Against the backdrop of a contracting economy and sluggish home sales in the past year, Chan announced modest tax breaks, a tweak to the stamp duty for first-time homebuyers, and another round of consumption vouchers, but in smaller sums.
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With immediate effect, smokers are being levied higher taxes while Chan also went after sports wagering with the imposition of a higher betting duty on the Hong Kong Jockey Club. The financial secretary left salary and profit tax rates unchanged.
He also mapped out his plan to lure overseas enterprises and talent, as well as steer the city towards profitable green technologies.
Here are six key takeaways from the latest budget address:
Tax breaks and stamp duty tweaks
To alleviate the public’s burden, Chan announced – much like in previous years – a reduction in salaries tax by 100 per cent, subject to a ceiling of HK$6,000 (US$765), as well as a subsidy of HK$1,000 on electricity. But the latest salary tax ceiling is much less than the HK$10,000 announced last year.
