Hong Kong may impose 100% tobacco duty increase: analyst

The market should also tax non recyclable plastic during the budget.

As Hong Kong will also declare budget announcements for 2023, CPA Australia recommended measures to revitalise the economy.

It sees that there will be about a $126b fiscal deficit for the fiscal year 2022 to 2023.

CPA Australia advised Hong Kong to raise tobacco duty by 100% to reduce smoking rates. Hong Kong may also impose taxes on non recyclable plastics to reduce plastic waste.

The government may also consider increasing tax allowances and maintaining the $10,000 tax rebate on salaries tax. 

For lower-income households, CPA Australia said there may be a two-tiered e-consumption voucher with a target disbursement period in the first half of 2023.

Hong Kong may also consider prolonging its Special 100% SME Financing Guarantee Loan Scheme and the Pre-approved Principal Payment Holiday Scheme. 

For talent, enhancing Hong Kong’s top talent pass may reduce salaries tax rate for successful applicants by 50% for the first two tax years.