Analysis
Hong Kong SAR Budget 2023/2024
Deloitte's Commentary
The Financial Secretary for the Hong Kong Special Administrative Region (HKSAR), Mr. Paul Chan, has delivered his seventh budget on Wednesday, 22 February 2023.
Our coverage includes a commentary and analysis in response to the Budget prepared by the Deloitte Hong Kong Budget Team, led by Ms. Polly Wan, Tax Partner of Deloitte China, and a summary highlighting the key proposals.
Press Release
The 2023-24 Budget: A sustainable, balanced budget charting a new course for Hong Kong's post-pandemic economy
Today, 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.
Summary of Tax Measures
The Financial Secretary for the Hong Kong Special Administrative Region (HKSAR), Mr. Paul Chan, has delivered his seventh budget on Wednesday, 22 February 2023.
Our coverage includes a commentary and analysis in response to the Budget prepared by the Deloitte Hong Kong Budget Team, led by Ms. Polly Wan, Tax Partner of Deloitte China, and a summary highlighting the key proposals.
Please click here to view about our Budget highlights and commentary.
Deloitte's Commentary
The Financial Secretary of the Hong Kong Special Administrative Region (HKSAR), Paul Chan Mo-po, delivered the 2023-24 Budget speech today. This is the first budget he has prepared for the current-term government led by John Lee Ka-chiu, HKSAR Chief Executive.
For the 2022-23 financial year (FY2022-23), the Financial Secretary announced the second-highest fiscal deficit in Hong Kong's history of HKD139.8 billion, behind only the HKD232.5 billion deficit in FY2020-21. The deficit for FY2022-23, down from a surplus of HKD29.4 billion for FY2021-22, is mainly due to softer stock and property markets, reduced revenue from tax and land premiums, and increased expenditure on anti-epidemic efforts and relief measures. This will lead to a sharp drop in fiscal reserves to HKD817.3 billion as of 31 March 2023.
Given Hong Kong's post-pandemic economic recovery remains nascent, the Government tightened relief measures from previous years' levels to balance the need to sustain the public finances and support economic recovery. The Budget also prepares for a speedy recovery, high quality development, alignment with National Development Strategies, and governing for the people.
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.
Click here for more media coverage
