[ruthless]

I've often wondered how Hong Kong survives on such low tax. ~15% flat rate on income, no duties and shops have no tax as well. Not sure what the corporate tax rate is but how does the government get by creating such phenonemal infrastructure with such less tax?

[Lazy J]

Land sales, my friend. The Hong Kong government runs on selling land that is worth a fortune. They also create new land by filling in the harbour.

[FilipH]

Originally Posted by Lazy J

Land sales, my friend. The Hong Kong government runs on selling land that is worth a fortune. They also create new land by filling in the harbour.

yep, i guess that must be it. HK really has a unique system of income revenue.

[Mat]

Originally Posted by ruthless

I've often wondered how Hong Kong survives on such low tax. ~15% flat rate on income, no duties and shops have no tax as well. Not sure what the corporate tax rate is but how does the government get by creating such phenonemal infrastructure with such less tax?

Never wondered why your rent is so high?

Thank the government for selling it to a "nice" price to developpers who sell it to a "nice" price to home buyers, who rent it you for a "nice" price!

There you get where the HKG gvt gets part of its money

[backpacker]

also stamp duties from the stock market transactions...

[jayinhongkong]

Legal gambling is also a major source of revenue for the government.

"In 2002-2003, the betting turnover was HKD 71 billion. After paying dividends of 58 billion and betting duty of 9.5 billion, its betting commission revenue was HKD 3.9 billion. It contributes 11.7% of Hong Kong's tax revenue. Surpluses from its operation are allocated to the Hong Kong Jockey Club Charities Trust". (Wikipedia)

[freeier]

i think the key is expenditure.

HK is not a socialistic place, not much help for jobless and such. they also don't have a defense requirement (which takes up usually most country's big budget) so they can afford to take in less.

[KnowItAll]

Taxes: Personal Tax, Corporate Tax, Business Registration, Car related Taxes, Incorporation Fees, Stamp Duty on Land and other sales.. and screwed up forecasting.

Add to that, no defense related costs (armed forces)...

If the Chief Economist of Hong Kong were the CFO of a major public company, he'd be fired for how wrong the estimates are.

[gilleshk]

Originally Posted by KnowItAll

If the Chief Economist of Hong Kong were the CFO of a major public company, he'd be fired for how wrong the estimates are.

Along with finance ministers of most governments. Budgeting in government is a much art and creativity as it is science...

[pin]

basically lower public expenditure!