BUDGET 2023: $54.4b deficit seen in 2023/24 

This is down from the estimated $139.8b deficit in 2022/23. 

The government projected Hong Kong will see a deficit of $54.4b in 2023/24 and a fiscal surplus in the next four years, starting 2024/25. 

The 2023/24 forecast is down from the $139.8b deficit estimated in 2022/23, a revision of the initial $56.3b projection. 

“Taking Hong Kong’s previous financial position in times of adversity as a reference, I consider that our fiscal reserves are currently maintained at a prudent level,” Financial Secretary Paul Chan said.

Read more: Hong Kong deficit could hit $120.9b in 2022/23: KPMG China

To generate revenue, Chan said the government will look at imposing an annual special football betting duty of $2.4b on the Hong Kong Jockey Club for five years, starting 2023/24.

Meanwhile, profits tax and salaries tax will remain unchanged. 

Moreover, the government will be launching a consultation exercise for the imposition of the global minimum tax rate in 2025 to allow multinational enterprise groups .

A domestic minimum top-up tax is also expected to be introduced in 2025, bringing up tax revenue by an estimated $15b per year.