The Hong Kong Institute of Certified Public Accountants (HKICPA) welcomes the 2023-2024 Budget announced by the Government for its comprehensive approach in focusing on the needs of all sectors of society. It is hoped that the Budget will help the city get back on track, revive the economy in the post-COVID era, and reconnect with the international community. However, the HKICPA believes that the Government could also formulate more targeted measures, such as carrying out a broad review of the tax system and providing more family-friendly measures to retain and attract talent, so as to enhance Hong Kong's competitiveness in the medium and long term.

The HKICPA is pleased to note that the Budget has adopted a range of measures proposed previously by the Institute. These include funding for hosting large-scale international events and activities to promote high-quality tourism and eco-tourism, providing more community relief measures, promoting the digital economy, supporting start-ups and tech ventures, proposing tax incentives for intellectual property business, promoting green finance, introducing policies to encourage foreign direct investment, supporting community sports participation, improving Hong Kong’s livability, and promoting the wider adoption of electric vehicles (EVs).

2023-2024 Budget welcomed by the HKICPA

The Financial Secretary announced that a deficit of HK$139.8 billion is expected for 2022-2023, which is HK$25.9 billion higher than the HKICPA’s earlier estimate. The HKICPA believes that part of this gap is due to the impact of weaker public finances, as well as the withdrawal of three land sales in recent months, which has significantly decreased Government land sales revenue.

“While Hong Kong is on its way back to normality after the pandemic, there is still lingering uncertainty due to the increasing global economic slowdown and rising interest rates. Hong Kong needs to work together to re-establish and reinforce its ties with the international community. This will restore the trust in the city’s reputation as a top destination for global businesses,” says Loretta Fong CPA, President of the HKICPA. 

Tax reform called for to stabilise the economy in the long run

The HKICPA has been for years reiterating that a more extensive review of the tax system should be conducted due to the narrow tax base of Hong Kong, making most of the Government's recurrent revenue and capital income vulnerable to economic cycles. Therefore, the Institute has been calling for the Government to have a review on the mode of public finance and revenue, and a broader review on the taxation system, in tackling the pressure of public finance in the long run and preventing structural deficit.

“We are pleased to see the Government to set up a time table for the Base Erosion and Profit Shifting (BEPS) 2.0 initiative and the implementation in Hong Kong of a global minimum tax rate of 15% for large multinational companies. The HKICPA expects the Government to maintain close communications with major stakeholders, including taxation and accounting professionals, to enhance tax certainty for taxpayers, and hence to maintain Hong Kong's attractiveness in terms of taxation and competitiveness on business operation,” says Eugene Yeung CPA, Convenor of Budget Proposals Sub-committee of the HKICPA.

Relief measures to ease pressure on citizens

Consumption vouchers

The Budget proposed to hand out HK$5,000 in consumption vouchers to Hong Kong citizens, to be distributed in two instalments. This will be especially helpful for individuals and families of lower incomes. Due to the current economic downturn and rising energy costs, the HKICPA believes that in the current economic environment, consumption vouchers can assist grassroots residents reduce their financial burden and boost local consumption.

Given the Government's fiscal deficit and the fact that consumption vouchers only have short-term and limited effects, the HKICPA agrees that it is appropriate to issue a lower amount of vouchers this year than last year.

Salaries tax measures

In the past three years, the economic repercussions of the pandemic have taken a toll on everyone. The HKICPA suggested that the Government step in and relieve taxpayers’ financial burden. The HKICPA expresses disappointment with the decision to reduce the tax rebate from HK$10,000 in the 2022 Budget to HK$6,000 this year, and further suggests that the Government to review personal allowances (e.g. basic and dependent parent allowances) with the adjustment in line with inflation to alleviate taxpayers’ economic burden.

Ad volarem stamp duty (AVD)

The Budget has announced adjustments to the value bands of ad valorem stamp duty payable on the sale and purchase or transfer of both residential and non-residential properties. This will reduce the financial burden on first-time homebuyers.

The HKICPA notes that home prices in Hong Kong still remain relatively high despite the recent market downturn. Moreover, the demand for Hong Kong residential property from mainland buyers may strengthen after the re-opening of boundary with the Mainland. Therefore, the HKICPA supports the continuation of the so-called “property cooling measures”, while being pleased to see the Government make adjustments to the value bands of ad valorem stamp duty (Scale 2).

Tobacco duty and betting duty

The HKICPA understands that the Government is currently under financial pressure and needs to find ways to increase Government revenue in the short term to sustain its finances, including through betting duty and tobacco duty. 

In particular, the HKICPA considers the Government's announcement of an additional five-year football betting tax of HK$2.4 billion on the Hong Kong Jockey Club and the increase of tobacco duty acceptable, given that the Government continues to maintain a low-tax environment and that the impact of the football betting tax on the wider public is limited.

Nonetheless, the effectiveness of this method of collecting betting duty on a fixed-term basis differs from the Government's previous profit and betting pool bases, and therefore HKICPA hopes that the Government will further explain this taxation method.

Strengthening global connections 

The post-COVID era remains fraught with challenges and instability. The Budget includes the introduction of re-domiciliation mechanism, a new Capital Investment Entrant Scheme and a “patent box” tax incentive for intellectual property business, which should enhance Hong Kong's ability to attract investment and facilitate the city’s return to the international stage.

Hong Kong's tourism industry was hit hard during the pandemic. The HKICPA is pleased that the Government has been receptive to their recommendations to promote high-end tourism, which includes encouraging and supporting international events and activities such as conferences and exhibitions. It is hoped that Hong Kong's status as an events capital will not only enhance its international appeal, but will also attract more high-spending business travellers and tourists from mainland China and abroad. This, in turn, will give a much-needed boost to industries such as retail and tourism that have been significantly impacted by the pandemic.

Sarah Chan FCPA, Chair of the Taxation Faculty Executive Committee of the HKICPA, comments, “As Hong Kong emerges from the pandemic, it is imperative that Hong Kong reconnects with the international community. We believe that the Government should now also review the effectiveness and competitiveness of the existing tax incentives, such as the incentives for corporate treasury centres, and implement more concrete medium- and long-term measures to seize the opportunities presented by the post-COVID recovery, strengthen its international image, and enhance its competitiveness.”

HKICPA’s commentary on other initiatives

• Promoting green finance development: Hong Kong is uniquely poised to be an international centre for green technology and finance. The HKICPA applauds the Government's move in issuing the first batch of tokenised green bonds, taking a pioneering role in green finance and fintech while aligning its green financing standards and taxonomies with international standards.

• Such initiatives can help bolster investor confidence, thereby enlarging the market for sustainable financial products. This aligns with Hong Kong's sustainable development goals while staying up to date on global ESG trends.
• Promoting a healthy lifestyle: The HKICPA welcomes the Government's decision to provide funding for the building of indoor skateboarding, climbing and other urban sports facilities. This move is expected to provide more opportunities for increasing participation in these healthy sports. The HKICPA also suggests that the Government adopt its recommendation to give a tax deduction of up to HK$12,000 for taxpayers and their dependants for enrolment in qualifying sports courses and activities.
• Attracting and retaining talent: Lately Hong Kong has experienced an exodus of skilled workers, commonly referred to as the “brain drain”. To address this talent gap, the HKICPA suggests that the Government investigate measures to make Hong Kong more attractive to overseas talent, such as subsidising private education for their children, and providing allowances for hiring domestic helpers or for childcare services. The latter incentives would also benefit new parents who are unable to work from home.
• Electric vehicles (EVs): The HKICPA supports the proposed measures in the Budget to encourage the use of new energy transportation. The Government is recommended to continue to support and incentivise public transport providers to further explore and test green and innovative technologies and to expand the EV charging infrastructure. Also, Euro VI emission standards should be adopted for all commercial vehicles that cannot be replaced by electric vehicles. This would hasten the process of replacing old commercial vehicles.
• Family office: The HKICPA is pleased with the Government’s continued effort to promote Hong Kong as a destination for family offices through InvestHK. Hong Kong is strategically situated in the Greater Bay Area, with a sound financial regulatory framework. This makes it an ideal destination for family offices to expand their operations and meet the investment needs of ultra-high-net-worth individuals in the region through engaging with Hong Kong's markets.

香港會計師公會回應政府二零二三至二零二四年度《財政預算案》

香港會計師公會歡迎政府的二零二三至二零二四年度《財政預算案》，認為預算案的建議有助香港重整旗鼓，並與國際重新接軌，有利本港於「後疫情時代」重拾經濟動力。

預算案的建議亦採納了香港會計師公會早前提出的多項建議，包括舉辦及支持更多大型國際盛事及活動以吸引高增值旅客、提供更多社區紓困措施、推動數碼轉型、支持初創企業、為知識產權行業提供稅務優惠、促進綠色金融發展、引進外資政策、支援社區體育發展及改善本港環境及推廣電動車發展。

公會歡迎政府的二零二三至二零二四年度《財政預算案》
財政司司長公布二零二二年至二零二三年度預計錄得1,398億港元的財政赤字，跟公會早前估算落差為259億港元。我們認為此估算落差部分來自經濟疲弱影響公共財政收入，以及近月三個賣地項目流標，令政府土地收入大大減少。

香港會計師公會會長方蘊萱會計師表示：「雖然香港正逐漸走出疫情困境，但我們仍面臨著如全球經濟增長放緩及利率上升等不確定性，目前香港需重整旗鼓，與國際社會重新接軌，重新樹立其優秀營商環境的美譽。」

稅制改革 長遠穩定經濟
公會過去數年一直強調香港需全面檢討稅制，鑑於香港稅基狹窄，加上政府大部分經常性收入及資本收入來自利得稅、薪俸稅、印花稅及賣地收入，容易受到經濟週期影響。因此公會多年來均呼籲政府檢討公共財政收入模式、對稅制進行更廣泛的檢討，應對長遠的公共財政壓力及避免結構性赤字。

香港會計師公會財政預算案建議委員會召集人楊澤志認為：「我們樂見政府為『稅基侵蝕及利潤轉移』(「BEPS」)  2.0 方案下對大型跨國企業實施全球最低稅率15%進一步訂下時間表。公會期望政府與主要持份者，包括稅務及會計專業保持緊密溝通，為納稅人提供更大的稅收確定性，以維持本港稅務及營商競爭力。」

引領社會復蘇 推振經濟措施
消費券
財政預算案建議繼續分兩期派發消費券共5,000港元，公會相信會受到各社會階層，特別是低收入社群的歡迎。在經濟疲軟、能源價格及其他成本上漲的影響下，消費券將有助緩解基層市民的壓力，並刺激本地消費。公會考慮到財政赤字情況，以及消費券的效用較短期及有限，認為本輪發放消費券的金額較去年低亦是合宜之舉。

薪俸稅免稅額
過去三年疫情打擊經濟，公會認為是次將稅款寛減額由往年一萬元下調至六千元為「減糖」之舉。為減輕納稅人的經濟負擔，可檢討其他免稅額(如個人及供養父母免税額)，並以通脹率作為參考基礎。

物業印花稅
雖然近期本港樓價有所回落，但其實樓價仍然相對昂貴，而且房屋市場一直存在長期的短缺問題，再加上中港通關後來自內地買家對香港物業的需求等因素下，公會支持政府維持各項住宅物業需求管理措施（即所謂「辣招」），並樂見政府擴闊從價印花稅（第二標準稅率）稅階，減輕香港市民首次置業的負擔。

煙草稅及博彩稅
至於博彩稅及煙草稅方面，公會理解政府目前正面對財政壓力，須設法在短期內增加政府收入，以確保政府財政的可持續性。在維持低稅率政策及對市民影響有限的前提下，公會理解政府向香港賽馬會徵收為期五年、每年二十四億元的「額外足球博彩稅」及上調煙草稅之建議。不過，是次政府以定額方式收取博彩稅，有別於政府過去按利潤或彩池金額徵收稅款，此徵稅款方式成效仍有待觀察，公會亦期望政府可就此徵稅方式有更進一步闡釋。

與國際接軌 迎接全球競爭
後疫情時代仍然充滿各種挑戰及不穩定因素。公會認為政府是次財政預算案引入公司遷冊機制及「資本投資者入境計劃」，相信可提升香港招商引資的能力，有利香港與國際接軌。另外，公會對歡迎政府推行「專利盒」稅務優惠，認為此舉可有效發揮無形資產的經濟價值，鼓勵業界積極進行更多創科研發活動。

在疫情期間，本港旅遊業受重創，公會歡迎政府採納公會建議，開拓高檔旅遊，包括積極推動舉辦及支持更多大型國際盛事及活動，如國際會議與展覽。相信除了可進一步提升香港盛事之都的形象和競爭力，亦可爭取更多內地及境外商務及觀光等高消費旅客訪港，有助刺激零售業、旅遊業等在疫情重創之行業。

香港會計師公會稅務師會執行委員會主席陳嘉華資深會計師：「香港逐漸走出疫情困境，目前讓香港重整旗鼓並與國際重新接軌為當務之急，我們認為政府目前應檢視現有稅務優惠措施（例如企業財資中心稅務優惠）的成效及競爭力，並落實更多具體的中長期措施，抓緊疫情後恢復期的機遇，加強國際形象及提升競爭力。」

公會就財政預算案提及的其他建議有以下回應：

發展綠色金融：香港在建構國際綠色科技及金融中心具備優勢，公會歡迎政府早前發售全球首批政府代幣化綠色債券，在綠色金融及創新方面擔當領導者及先行者角色，亦致力推動綠色認證及國際標準銜接。此舉可有助提高投資者信心及認知，從而提高綠色金融產品市場規模，並能配合環球市場的環境、社會及管治(ESG)趨勢，支持香港的可持續發展。

鼓勵市民健康生活：公會歡迎政府計劃撥款興建室內滑板、攀石等設施，支援城市運動發展。公會期望政府可陸續增加相關措施，並進一步考慮公會的建議，為納稅人及其受養人所支付的認可運動課程和活動的費用提供每人最高 12,000港元的扣稅額。

吸引和留住人才：香港近年正面對人才流失問題，公會建議政府研究更多家庭友善政策，如透過為海外人才子女提供私立教育津貼，提供兒童保育／托兒服務，或家傭津貼等家庭有善政策，令一些無法在家工作的家長亦可受惠。

電動汽車 (EVs)：公會樂見財政預算案提出多項措施推動新能源運輸，並建議政府繼續鼓勵和支持公共交通營辦商探索、測試綠色創新運輸技術及擴展電動汽車充電設施，並對所有不能被電動車取代的商用車採用歐盟六期廢氣排放標準，務求可加快更換舊商用車。

家族辦公室：公會對特區政府透過投資推廣署推動香港發展家族辦公室業務感正面，本港位於大灣區之內，加上擁有穩健完善的金融監管制度，有助符合拓展區內家族辦公室業務的理想據點，滿足區內超高淨值人士投資本港市場。

_{香港會計師公會會長方蘊萱會計師（中）、香港會計師公會財政預算案建議委員會召集人楊澤志會計師（左）及香港會計師公會稅務師會執行委員會主席陳嘉華資深會計師（右）出席記者會回應政府2023-24年度財政預算案。}