Hong Kong Likely To Raise Income Tax Rate

tax       2003-01-15 
Just days after Hong Kong's Secretary for Commerce and Industry, Henry Tang, trumpeted the SAR's 'unconditional' 15% income tax rate during an attack on recently announced reductions in Singapore's tax rates, PricewaterhouseCoopers has predicted that Hong Kong's tax rates for companies and individuals will probably be increased by one percentage point in the new financial year (from 16%).
Commenting on the announcement that foreign companies locating in Singapore will receive a preferential tax rate of 15% rather than the usual 22%, Mr Tang said: 'This is a typical way Singapore way of doing things - it only looks good on the surface, but when you eat it, it's something different." But the Hong Kong government is up against the wall, with a ballooning deficit and tax collections cut back by its slackening economy, so something has to be done.