KK So and Agnes Wong, partners of PwC, expects a huge surplus for the public coffers for the coming year. Photo: RTHK
Accounting firm PricewaterhouseCoopers (PwC) expects the government to record a HK$95.5 billion surplus in the 2015-16 fiscal year, far exceeding the HK$36.8 billion previously forecast by officials.
The firm says much of the revenue came from profits and salaries tax, as well as stamp duty due to buoyant trading in the equity market.
The administration's fiscal reserves, meanwhile, are expected to hit almost HK$851 billion by the end of March – equivalent to 24 months of total government expenditure.
As the Financial Secretary, John Tsang, is expected to deliver his budget next month, Agnes Wong, a partner for Tax Services at PwC, said Tsang should consider more tax concessions for individuals, such as increasing allowances or offering tax breaks for health insurance policies.
When asked if the government should implement a universal retirement protection scheme when it has such a large fiscal surplus, KK So, another partner for tax services at the PwC, would only say that the government should study Hong Kong’s long-term fiscal position and consult the public on the issue.
http://news.rthk.hk/rthk/en/component/k2/1233990-20160106.htm
