Hong Kong budget 2024-25: wealthy and travellers among those targeted by new revenue-boosting measures
- Residents to pay more tax on annual salaries exceeding HK$5 million, while government will revive 3 per cent tax on hotel stays and raise tobacco duty
- But economists remain sceptical of effectiveness of measures in reducing deficit
The wealthy and travellers were among those targeted by new measures the Hong Kong government announced to boost its revenue and tackle a growing deficit, with the additional taxes and charges expected to generate an additional HK$4.39 billion (US$561 million) a year.
Contrary to earlier hints, Financial Secretary Paul Chan Mo-po on Wednesday avoided raising public service fees that would have affected most residents in his budget plan for the new financial year.
But economists remained sceptical of the effectiveness of the measures in reducing the deficit.
Chan said that additional revenue could be created only by making the “economic pie” bigger and enabling more robust and diversified growth.
“We have to take Hong Kong’s actual situation into account and avoid taking any hasty actions that may affect local economic recovery and people’s livelihood,” he said.
