Budget Speech

Increase Revenue

174. As I have pointed out in my last Budget, Hong Kong needs to maintain the development and vibrancy of our economy and identify new areas of growth, with a view to increasing our revenue.  I have just elaborated on the long-term positioning of Hong Kong's economy and the strategies for the development of our major sectors, which will help increase government revenue in the long run.

175. Besides, I mentioned last year that we need to consider seeking new revenue sources or revising tax rates, and reducing one-off relief measures progressively.  Though raising tax rates can increase revenue in the short run, the choice must be made carefully.

176. Having duly considered the impact on the securities market and our international competitiveness, we have decided to introduce a bill to raise the rate of Stamp Duty on Stock Transfers, from the current 0.1 per cent to 0.13 per cent of the consideration or value of each transaction payable by buyers and sellers respectively.  The Government will continue to spare no efforts in introducing measures to facilitate the development of the securities market, so as to take our financial services sector to the next level.

177. As businesses and individuals are generally under considerable financial pressure amid the prevailing economic environment and the epidemic, I consider that it is not the appropriate time to revise the rates of profits tax and salaries tax, which are our major sources of revenue.  Nevertheless, we will keep in view the situation and make adjustments at the appropriate time.

178. During Budget consultations, I received many proposals to introduce new taxes.  If we do so, we have to carefully examine the proposals, take all factors into consideration, and earnestly listen to views of various sectors of the community.  Fighting the epidemic and reviving the economy are our current priorities.  This is not the time to introduce new taxes.  Nevertheless, we will carry out related research and make preparation to facilitate in-depth discussions at a suitable time, and forge consensus before we introduce new taxes to increase revenue.