Hong Kong SAR Budget 2016/2017
The Financial Secretary for the Hong Kong Special Administrative Region (HKSAR), John Tsang, has delivered his ninth budget on Wednesday, 25 February 2016.
Our coverage includes a commentary and analysis in response to the Budget prepared by the Deloitte Hong Kong Budget Team, led by Yvonne Law, Partner of Deloitte China, and a summary highlighting the key proposals.
2016/17 Budget Analysis
Commitment to long-term growth, but lack of exciting relief measures
Issue H68/2016 – 24 February 2016
The Financial Secretary for the Hong Kong Special Administrative Region (HKSAR), Mr. John Tsang Chun-wah, delivered the 2016/17 Budget on 24 February 2016.
The Budget was prepared based on a better-than-expected surplus of HKD30 billion for 2015/16, mainly due to an increase in Stamp Duty, Profits Tax and Salaries Tax revenue. Tax reliefs, similar to prior years, are offered to individuals to ease the pressure on the middle class and to address the elderly and poverty.
Against the backdrop of the gloomy global business outlook and the deteriorating business environment facing the Hong Kong economy, the Budget emphasizes the need to foster talent development, explore new market opportunities for existing industries and encourage start-up and technological innovation, etc., which are deemed essential for Hong Kong's long-term economic development. Despite the surplus, the Budget contains fewer-than-expected measures for businesses.
This analysis highlights the key proposals in the 2016/17 Budget that affect businesses and individuals.
HK 2016/17 budget shows commitment to long-term growth, but lacks exciting relief measures
The Financial Secretary delivered a budget which shows commitment to long-term growth with measures to nurture innovation, identify new markets and foster talent development. However, there is a lack of exciting short-term relief measures to help mitigate pressure for companies and the general public in face of unstable economy.