Hong Kong Weighs Raising Taxes on Top Earners for Second Year

Hong Kong’s government is exploring options to raise taxes on the city’s highest earners for a second straight year to plug shortfalls in its budget, according to people familiar with the matter.

During consultation with members of the public in recent weeks, Hong Kong’s officials floated the idea of raising the 16 percent tax rate on the top income band of HK$5 million or more, said the people, who asked not to be identified discussing private information. Another option discussed was to include more people in the highest tax bracket by lowering the threshold, they added.

It was unclear if any concrete plans have been finalized or whether the government will proceed after the preliminary consultation, the people said.

(Bloomberg)