ACCA: It is expected that Hong Kong's fiscal deficit for this year will be HKD 122 billion. It is recommended to reduce the stock stamp duty.

Zhitong App has learned that the Hong Kong branch of the Association of Chartered Certified Accountants (ACCA) has announced its recommendations for the Hong Kong government's fiscal budget for the 2024/25 fiscal year. It is estimated that the fiscal deficit for 2023/24 will be HKD 122 billion, with fiscal reserves of HKD 713 billion. The organization also suggests further reducing stamp duty on the Hong Kong property market and prioritizing permanent residents of Hong Kong. In terms of the stock market, in order to enhance the competitiveness of the Hong Kong stock market and investor confidence, the organization recommends further reducing stock stamp duty in Hong Kong, for example, aligning it with the mainland level, to provide impetus for the stock market and capital injection, and consolidate Hong Kong's position as an international financial center.

Ho Ka Fai, Vice President of the Hong Kong branch of ACCA, stated that the Hong Kong government should review its operational methods and introduce new technologies to reduce costs without compromising service quality. He believes that it is an appropriate time to review the tax system, and the Hong Kong government needs to engage in extensive consultations on this matter.

Cheng Kit Sun, Co-Chairman of the Taxation Committee of the Hong Kong branch of ACCA, suggests that the Hong Kong government should introduce targeted subsidies for electric vehicles and extend the one-for-one replacement program, which is set to expire on March 31st this year. He also recommends that the Hong Kong government provide cash rebates or subsidies to companies with total income not exceeding HKD 5 million, in order to support or sponsor employee training and improve business processes and performance.

Chan Chi Wai, Co-Chairman of the Taxation Committee of the Hong Kong branch of ACCA, suggests that in order to expand the scale of Hong Kong family offices and diversify their investment portfolios with more Hong Kong dollars, the Hong Kong government should expand the asset categories eligible for tax incentives to include commercial and industrial property investments. In terms of the government's capital investor immigration scheme, ACCA recommends mandatory investment in flagship infrastructure projects in Hong Kong, such as the Northern Metropolis and the artificial island in Kau Yi Chau, to generate synergies with other strategic developments of the Hong Kong government.

Chan Chi Wai also suggests that the Hong Kong government should prioritize signing tax agreements with other major trading partner countries, especially countries along the Belt and Road Initiative, and consider relaxing the tax deduction eligibility for research and development expenses, as well as introducing cash rebates for designated expenses related to qualified activities or assets.

In terms of green finance, it is recommended to provide further non-monetary support to eligible bond issuers and loan borrowers, as well as extend the deadline and increase the subsidy amount for the pilot program on green and sustainable finance training.