The Hong Kong government saw an over 140 percent increase in stamp duty revenue from stock trading in the first two quarters of the fiscal year, on track to exceed its original target, as turnover soared on improved market sentiment.
The stamp duty collection from stock transactions in the two quarters of 2025-26 was about HK$44 billion, representing an increase of about 143 percent from the same period of last year, the Acting Secretary for Financial Services and the Treasury, Joseph Chan Ho-lim, said in a written reply to lawmakers on Wednesday.
That compared to a revenue of HK$52 billion for the financial year ended March, which had risen 43 percent year-on-year.
Together with the HK$350 million stamp duty collected from leases, HK$9.2 billion from property transactions, and HK$54 million from property transfers, the government’s total stamp duty revenue reached HK$53.6 billion in the April-September period.
With two more quarters ahead, the authorities are well on track to far surpass their expected revenue of HK$67.6 billion for the current fiscal year. The SAR collected HK$63.9 billion from stamp duties in 2024-25.
Stamp duty revenue is the third biggest source of income for the government, after profits tax and salaries tax, accounting for around 10 percent of its operating income.
Slumps in such revenue in recent years amid a sluggish property and stock market were often regarded as one of the main contributing factors for the city’s fiscal deficit.
Financial Secretary Paul Chan Mo-po has said the government’s operating account may swing from a projected deficit to a surplus this fiscal year because of revenue growth and cost control measures.
