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Hong Kong to increase taxes for high earners



Hong Kong has committed to reducing its fiscal deficit, expecting the fourth budget shortfall in five years, with the current financial year ending March 31 projected at a deficit of HKD101.6bn (USD13bn), nearly double last year’s forecast. Financial Secretary Paul Chan aims to cut the deficit to HKD48.1bn by March 2025, despite falling land sales and economic challenges post-pandemic. Measures to revive the housing market and tourism include a HKD1bn investment to attract visitors and hosting events, alongside a tax rate increase for high earners to 16% for incomes over HKD5m, marking the first rise in two decades. Efforts to enhance government revenue also involve hiking tobacco taxes to 70% and reintroducing a 3% hotel room tax.

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