(Bloomberg) -- Hong Kong, famed as a low-tax, high-income haven, will increase tax on high earners in a bid to bring down its deficit.
A two-tier tax system will be introduced from April, with income of up to HK$5 million ($640,000) taxed at 15%, and anything higher than that being taxed at 16%. Previously tax for all individuals was capped at 15%.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
The move will affect about 12,000 people, or about 0.6% of taxpayers, Financial Secretary Paul Chan said.Â
Hong Kong is looking at ways to plug the hole in its budget, with the deficit for the year ending March 31 projected at HK$101.6 billion, almost double the estimate initially laid out a year ago. Yet increasing the tax on the high earners may deter finance workers at a time when the government is seeking to revive the industry.
The move will bring in about HK$910 million of additional revenue each year, Chan said, adding that the new tax rate will still be lower than in other advanced economies.
--With assistance from Adrian Kennedy and Young-Sam Cho.
(Updates to add details in second and fourth paragraphs.)
More stories like this are available on bloomberg.com
©2024 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.