Democrats predict HK$3b gain from higher profits taxLocal | 13 Sep 2017 4:36 pm
The Democratic Party is asking the government raise tax rates for bigger companies when it unveils its profits tax reform plan to help smaller businesses.
In a survey the party found that three-quarters of the respondents support raising the profits tax rates from 16.5 to 17 percent for businesses making more than HK$10 million a year.
The party's chairman, Wu Chi-wai, (pictured, left, beside Yuen Hoi-man) said the survey of more than 1,000 people also showed a majority supported a proposal by the Chief Executive Carrie Lam to lower the tax rate for small and medium enterprises.
During her campaign for the top job, Lam had floated plans to lower the tax rate for the first HK$2 million of profits from the current 16.5 to 10 percent. The Financial Secretary Paul Chan said last month that everything is set for the plan to be announced by the CE.
Wu said when the tax benefits are given to smaller businesses, the loss in government income should be made up by taxing bigger companies.
He said more than 80 percent of the tax revenue is paid by companies which make profit of more than HK$10 million. He said raising their tax rate by 0.5 percent would bring in over HK$3 billion as additional income to the government.-RTHK