Analysis
Hong Kong SAR Budget 2023/2024
Media Coverage
8 March 2023, MingPao(Chinese only)
In an article contribution to Ming Pao, Deloitte China tax director Jackie Wong and manager Jeffrey Siu stated that the government has dedicated substantial part of the budget to create impetus for economic growth by propelling information technology development. They welcomed the government's efforts to continuously enhance preferential tax policies for aviation leasing, and also recommended evaluating how changes in the international tax landscape impacts the effectiveness of tax incentives.
24 February 2023, MingPao(Chinese only)
In an article contribution to Ming Pao, Deloitte China tax partner Polly Wan and manager Catherine Chan welcomed the support measures rolled out by the government in its latest budget. They agreed that more policies should be introduced to stimulate the local economy, such as adjustment of value bands of the Ad Valorem Stamp Duty to ease the burden on first-time home-buyers, and further enhancement of tax measures to boost I&T investment with a view to strengthening Hong Kong's international status.
The 2023-24 Budget: A sustainable, balanced budget charting a new course for Hong Kong's post-pandemic economy
22 February 2023, South China Morning Post, China Daily Hong Kong, RTHK
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On 22 February, Financial Secretary Paul Chan delivered the 2023-24 Budget, emphasizing high-quality economic development in the post-pandemic era and transitioning to moderately loose fiscal policies with a clear focus on investing in traditional industries and emerging strategic sectors. Attracting enterprises and talent remains high on the agenda, with sustainability objectives and a commitment to developing the digital economy and innovation and technology (I&T) ecosystem also standing out as priorities.
For FY2022-23, Hong Kong recorded its second-highest fiscal deficit in history of HKD139.8 billion, behind only the HKD232.5 billion shortfall in FY2020-21. Turning from a surplus of HKD29.4 billion for FY2021-22, this weak fiscal outcome was mainly due to softer stock and property markets, reduced revenue from tax and land premiums, and increased expenditure on anti-epidemic efforts and relief. This will cause a sharp drop in fiscal reserves to HKD817.3 billion by the end of March 2023. Despite the huge deficit, the outlook for Hong Kong's economy remains positive this year, with the resumption of business activities, slowing interest rate hikes, and easing inflationary pressure set to provide tailwinds to global economic recovery. A new round of the consumption vouchers will continue to stimulate domestic consumption, while tax relief is welcome to ease the burdens of individuals and enterprises in this critical period as Hong Kong bounces back from the pandemic.
Deloitte expects HKSAR to record a deficit of HKD125.7 billion in FY22/23 and calls for handout of HKD5,000 spending vouchers
8 February 2023，RTHK , AASTOCKS.com , The Standard , China Daily Hong Kong
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Ahead of the Financial Secretary Paul Chan's budget speech on 22 February, Deloitte China's Hong Kong Budget Team hosted a press conference on 7 February to review the HKSAR Government's latest fiscal conditions and provide proposals to promote sustainable growth in traditional and emerging industries. According to Deloitte's latest estimates, the SAR will record a deficit of HKD125.7 billion for FY2022/23, with fiscal reserves expected to narrow to HKD831.4 billion by the end of March 2023.
29 December 2022, Ming Pao (Chinese only)
Deloitte China tax director Jackie Wong and manager Jeffrey Siu contributed an article to Ming Pao, stating that the refinement of Hong Kong's corporate tax regime in response to the EU's concerns over double non-taxation might lead to increased tax complexity. They suggested that the government introduce more tax incentives to attract enterprises and talent to Hong Kong.
19 December 2022, Ming Pao (Chinese only)
In an article contribution to Ming Pao, Deloitte China tax director Esti Chui and senior manager Carol Chung suggested the Financial Secretary include timely enhancement of various housing and individual tax relief measures in the 2023/24 Budget to further support the livelihood of Hong Kong citizens.
6 December 2022, Ming Pao (Chinese only)
Deloitte China tax partner Polly Wan and manager Catherine Chan contributed an article to Ming Pao, recommending that the government explore specific policies, such as tax incentives for digital transformation, to encourage SMEs to achieve growth by leveraging innovative technologies.
11 November 2022, The Standard
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Deloitte held the "2022-23 Budget Review & Outlook" press briefing on 10 Nov 2022. Due to COVID-19 and weak performances of the stock and property markets, Deloitte predicted a budget deficit of HKD170 billion, way above the government's earlier estimation of HKD56.3 billion.
2 November 2022, Ming Pao (Chinese only)
Deloitte China tax partner Leo Yang stated in an article contribution to Ming Pao that the Guangdong FTZ has in recent years rolled out preferential tax policies to match the tax burden in Hong Kong, opening up new opportunities for Hong Kong enterprises and citizens in different industries to develop in the Greater Bay Area.
17 October 2022, Ming Pao (Chinese only)
In an article contribution to Ming Pao, Deloitte China tax partner Doris Chik and managers Carmen Cheung and Kiwi Fung recommended a comprehensive review of Hong Kong's tax system to ensure the city's tax competitiveness. They also suggested that the government offer tax reliefs for income from intellectual property, while providing further tax incentives for the financial services and capital markets industries.
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