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We rely upon very limited range of taxes as well as non-tax income in order to obtain adequate revenue to support our expenditure. Below is a graph which shows Hong Kong tax revenue composition as a percentage of total tax revenue compared to the OECD economies.
This table on the other hand, reflects Hong Kong’s dependence on Income, profits and property relative to other sources...
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The dependence on Profits Tax is a lot higher than the OECD average, whereas the reliance on property-related taxes is three times the average of other OECD countries. Both of these are relatively unstable and are highly vulnerable as it is subjected to various factors outside Hong Kong government’s control...
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