Inland Revenue expects 12% rise in tax collection

The Inland Revenue Department on Thursday said it expects a 12 percent increase in the amount of tax it collects this year, following a drop last year. Provisional figures show the department collected HK$342 billion in the last tax year, which was HK$18.2 billion or about five percent lower than in 2022-23. But it said it expects tax revenue to rise to HK$382 billion this year. The department said stamp duty revenue is likely to hit HK$71 billion this year, following a 30 percent decrease to HK$49.1 billion last year. Commissioner of Inland Revenue Tam Tai-pang noted that the city's "spicy" property cooling measures were scrapped in February. "The year 2023-24 had seen a significant drop in property market transactions... and that contributed largely to a significant drop in the stamp duty collections for the year," he said. "We understand that after the abolition of all the demand-side management measures for residential properties, there's a notable increase in property transactions." The department said it has sent out about 2.44 million tax returns for individuals for the 2023-24 financial year. People have until June 3 to post them back, or until July 3 if the returns are filed via e-Tax.