Tax take breaks record

Reaches $242.2 billion in 2012-13 financial year.

This total tax revenues collected was 2% higher than the previous year. Commissioner of Inland Revenue Chu Yam-yuen said the increase was mainly caused by a 6% rise in profits tax, reaching $125.6 billion.

The property tax take and betting duty amounted to $22.6 billion and $16.6 billion. Chu said the property market was vibrant for most of the year before the government introduced demand-control measures, accounting for the performance of stamp duty and property tax.

Chu said the economic situation in 2011-12 was relatively good, leading to a 13% increase in the overall assessable profits of businesses, boosting profits-tax revenue and bringing total revenue to a record high.

For salaries tax, a 2% decrease was noted because of an increase in personal allowance in 2012-13. The stamp duty dropped 3% on the previous year, however.

Chu forecast that salaries and profits tax will rise. He forecast a 2% increase in the stamp duty for 2013-14.