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Hong Kong economy
Hong KongHong Kong economy

Hong Kong tax revenue drops HK$18.3 billion to HK$360.2 billion in 2022-23; decline in property and stock market activity blamed

  • Latest tax income figures reverse upwards trend seen over past few years
  • Inland Revenue commissioner says property market ‘not very active’ and sluggishness reduced tax take for year

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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
Ng Kang-chung
Hong Kong’s tax revenue dropped by HK$18.3 billion (US$2.3 billion) to HK$360.2 billion in the last financial year, with the decline blamed on a dampened mood in the property and stock markets, which caused a 30 per cent plunge in stamp duty payments.
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The 2022-23 decline in the tax take, announced on Tuesday, reversed an upwards trend recorded over the previous few financial years and was almost HK$30 billion lower than projections made last year.

Provisional figures released by the Inland Revenue Department showed the taxman collected a record HK$378.5 billion in 2021-22, up HK$47.7 billion – 14 per cent – on 2020-21.

“The property market for the past year was not very active,” Commissioner of Inland Revenue Tam Tai-pang said. “In terms of transaction volume and prices, it cannot be said to be satisfactory. Thus, revenue from stamp duty has fallen.”

(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
(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

About 48 per cent of 2022-23 receipts came from profits tax, 4 per cent up on the previous financial year. Salaries tax accounted for about HK$79.5 billion, a 5 per cent increase.

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