The Hong Kong Institute of Certified Public Accountants (HKICPA) welcomes the 2024-2025 Budget announced by the Government. Against the background of continuing external challenges, it adopts a pragmatic and balanced approach, taking into account the needs of different sectors of society, while pursuing further economic development, and aiming to maintain a fiscally prudent stance and transparency in public finances. The Institute believes that the Budget gives further impetus to Hong Kong’s economic development, its vibrancy and attractiveness to investors and talent, as well as its status as a leading international financial centre.  

The HKICPA is pleased to note that the Budget has adopted a range of measures proposed previously by the Institute, including further support for hosting mega events and activities to promote high-quality tourism, fostering digital transformation, strengthening development of the green finance ecosystem in Hong Kong, helping to restore fiscal balance through prudent financial management, enhancing the profit tax system and making enhancements to harbourfront locations.

2024-2025 Budget welcomed by the HKICPA

The Financial Secretary announced that a deficit of HK$101.6 billion is expected for 2023-2024, which is HK$25.7 billion lower than the HKICPA’s earlier estimation. The HKICPA believes that the deficit reflects the impact of multiple factors such as lower revenues from land premiums during the fiscal year, slower-than-expected economic growth, and reduced stamp duty revenue from the stock and property markets.

“We are pleased to see that a number of recommendations put forward by the Institute in our budget and other submissions have been adopted in the Budget. As Hong Kong is expected to face continuing challenges from the external environment, we hope the Government will look to build on the measures in the Budget to strengthen Hong Kong’s long-term economic development,” says Roy Leung FCPA, President of the HKICPA. 

Fiscal consolidation programme for sound economic growth in long run

The Institute welcomes the fiscal consolidation programme with the aim of maintaining the sustainability of public finances, achieving fiscal balance gradually and keeping the fiscal reserves at a prudent level. The Institute believes that maintaining sustainability of public finances will be important to Hong Kong’s role as financial centre and its economic development generally. At the same time, given the pressures on the public purse and the challenges ahead, the Institute continues to suggest that that the Government explore options to widen the tax base, while ensuring that the tax regime remains attractive to investors.

The Budget has announced the issuance of $120 billion worth of bonds in 2024-25, of which $70 billion will be the retail tranche. The Institute believes that the issuance of a new round of Silver Bonds and Green Bonds will facilitate the further development of local bond market, provide additional opportunities for investors and also bring vital revenue to the Government. It is also pleasing to see that the Financial Secretary emphasized the intention not to raise debt frequently to fund recurrent expenditure, based on the principle of prudent financial management.

“We hope that the Government will explore possible new sources of revenue to ensure that Hong Kong’s public finances can meet the long-term needs of the economy and the community. It is also important to make sure that, overall, our tax regime remains fit for purpose,” says Eugene Yeung CPA, Convenor of Budget Proposals Task Force of the HKICPA.

Reinvigorate Hong Kong as a world city; attract investment and talent

In the post-COVID era, Hong Kong tourism is still on the way to full recovery. The HKICPA welcomes the fact that Government has responded to the proposal to promote higher-value-added tourism by earmarking $100 million to boost mega-event promotions over the next three years, which includes encouraging and supporting large-scale events and activities, such as international conventions, exhibitions and fireworks displays. It is believed that Hong Kong's status as a mega-event hub could be further enhanced. Also, it would further attract high-end tourists, such as business travellers and tourists coming from other parts for the world. In addition, as the Government has proposed to resume the collection of the Hotel Accommodation Tax, it is believed that the revenue could help to finance the costs of staging mega-events.

In the face of various global economic challenges, Hong Kong should enhance its international image and promote the attractiveness of its business environment to strengthen  competitiveness. The Institute acknowledges the Government’s efforts to actively reach out to enterprises from the Mainland and overseas, and attract and assist strategic enterprises, high value-added technology industries and other enterprises to invest in Hong Kong, and is pleased to note the successes achieved so far.

In recent years, there have been several major international taxation developments, such as the implementation of the BEPS 2.0 initiative, impacting on Hong Kong’s taxation rules. Sarah Chan FCPA, Chair of the Taxation Faculty Executive Committee of the HKICPA, commented, “The Institute suggests the Government continue to reach out to affected companies to ensure that they have a clear understanding of how new tax laws will be implemented in Hong Kong. And, the Government should allow sufficient transition time for affected taxpayers to get prepared for these changes and adequate promotion and public education should be conducted, so as to ensure greater certainty.”

Alleviating the financial burden on citizens and promoting market transactions and development

Green finance

The Institute welcomes the various measures to promote green finance, such as formulating a roadmap for the implementation of international Sustainability Disclosure Standards. We agree that accurate disclosure of sustainability-related information is essential. Enhancing disclosure can deepen Hong Kong's green and sustainable finance development. In addition, extending the Green and Sustainable Finance Grant Scheme and expanding the scope of subsidies to cover transition bonds and loans can encourage related industries in the region to make use of Hong Kong's transition financing platform as they move towards decarbonisation.

Promoting green city development

The Institute is pleased that a range of measures to promote green city development were included in the Budget, including the extension of the "One‑for‑One Replacement" Scheme, and continuing to waive in full over the next two years the first registration tax (FRT) for other types of electric vehicles, including electric commercial vehicles, electric motorcycles and electric motor tricycles, albeit with downward adjustments in some cases . These measures can continue to encourage the wider adoption of electric vehicles and accelerate the pace of green city development. Regarding the reduction of concessions by 40 per cent for the "One‑for‑One Replacement" Scheme, the Institute views the change as acceptable given the lower prices and wider selection of electric vehicle models. However, the Institute hopes that the Government will continue to introduce more measures to encourage Hong Kong drivers to switch to electric vehicles, such as expanding the charging infrastructure, in view of the  Government’s goal of ceasing to register new fuel-driven and hybrid private cars by 2035.

Cancellation of special stamp duties on property sales

The special stamp duties on property sales were originally implemented with the aim of curbing speculation and halting further price rises. At this time, while we believe there are no immediate signs of speculation in the market, the lack of market confidence, high-interest-rate environment, poor land sales and global uncertainties, are more relevant to the weakening property market. We therefore do not foresee the cancellation having any major immediate impact on the property market. However, it will send a signal to the market and may encourage more activity when the high-interest-rate environment changes and the level of confidence improves. The Government should continue to monitor the property market and review the situation.

Relief Measures

Economic repercussions of the pandemic are still felt across society, while the Government continues to face financial pressure. The HKICPA believes the decision to reduce the tax rebate from HK$6,000 in the 2023 Budget to HK$3,000 is a pragmatic decision in the present circumstances. Nonetheless, to alleviate the financial burdens of taxpayers, the Institute suggests that the Government review the provision of other tax allowances (e.g. personal basic allowances and dependent parent allowances) with reference to inflation. Allowances for new-born children can be also reviewed to encourage childbirth.

Allowances under Profits Tax

The HKICPA welcomes the decision to remove the time limit for claiming allowances for industrial and commercial buildings and structures. This measure has been advocated by Institute and is a positive step towards creating a more favourable business environment and supporting economic growth in Hong Kong.

Enhancements to harbourfront locations

The proposal to introduce commercial facilities such as food and beverages, retail and entertainment on a pilot basis at selected suitable harbourfront locations, to bring convenience and better experience to visitors also aligns with the HKICPA’s recommendations to enhance the attractiveness of these areas, and to stimulate economic activity, ultimately contributing to the overall vibrancy of Hong Kong’s tourism sector.  

^{Roy Leung FCPA, President of HKICPA (Centre), Eugene Yeung CPA, Convenor of Budget Proposals Sub-Committee of HKICPA (Left) and Ms. Sarah Chan FCPA, Chair of Taxation Faculty Executive Committee of HKICPA(Right) attended press conference to response to Government Budget 2024-25.}

香港會計師公會回應政府二零二四至二零二五年度《財政預算案》

香港會計師公會歡迎政府的二零二四至二零二五年度《財政預算案》，在持續面對環球經濟挑戰的背景下，認為預算案的建議務實而全面，平衡社會不同界別的需要，同時追求經濟發展及貫徹保持「審慎理財」的方針，並在公共財政上具透明度。公會相信，預算案有助保持香港經濟增長活力和對投資者及人才的吸引力，並鞏固本港的領先國際金融中心地位。

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，包括進一步支持舉辦更多大型盛事及活動以吸引高質素旅客、推動數碼轉型、促進綠色金融在港發展、透過審慎的財政整合以尋求收支平衡、提升利得稅制度及善用海濱資源等。

公會歡迎政府的二零二四至二零二五年度《財政預算案》

財政司司長公布二零二三年至二零二四年度預計錄得1,016億港元的財政赤字，較公會早前的估算少257 億港元。我們認為政府赤字反映多個因素，包括年度內賣地收益減少、經濟增長速度遜預期、資產市場仍然疲弱、股市及樓市交易印花稅收入減少等。

香港會計師公會會長梁思傑資深會計師表示：「我們樂見預算案採納了一系列公會所提出的建議。由於預期香港將面對外來環境持續的挑戰，公會期望政府能落實預算案的措施，以提升香港的長期經濟發展。」。

整合財政計劃 長遠維持經濟穩健

公會歡迎政府透過制定整合財政計劃，以維持公共財政的可持續性，逐步回復收支平衡並維持財政儲備於穩健水平。公會認為，維持公共財政的可持續性，有助支持香港繼續成為金融中心及整體經濟發展。同時，面對公共財政壓力及當前的挑戰，公會繼續建議政府探討擴闊稅基的可能性，同時確保稅制對投資者的吸引力。

預算案公布2024-25財政年度內將發債1,200億元，當中700億元為零售債券。公會認為，政府發行新一批零售債券包括銀色債券、綠色債券及基礎建設債券等，可促進本地債券市場的發展，為投資者提供額外的投資機遇，亦可為政府帶來收入。此外，公會樂見財政司司長基於「審慎理財」原則，強調發債將不會用作應付經常性開支。

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認為：「我們期望政府探索新收入來源，以配合經濟及社會的長遠發展。同時，我們亦需要確保我們的稅制能夠相應配合。」

振興國際都會地位 吸引投資與人才

在後疫情時期，本港旅遊業仍有待全面復甦。公會歡迎政府回應公會建議，預留一億元以加強未來三年盛事宣傳工作，吸引高質素旅客，包括積極推動舉辦及支持更多大型盛事及旅遊活動，如國際圓桌會議、展覽及煙花匯演等，相信可進一步提升香港作為盛事之都的形象和競爭力，吸引更多來自世界各地的商務及觀光等高消費旅客訪港。此外，政府建議重新徵收酒店稅，公會認為所得收益，可用作資助舉辦盛事的成本。

面對各種全球經濟挑戰，總括而言香港宜加強向外宣傳國際化形象及營商環境的魅力，以提升競爭力。公會認同預算案建議透過不同渠道，主動接觸海內外企業，積極吸引重點企業、高增值科技及其他企業來港投資；公會欣見相關策略對吸引投資及人才已起了一定作用。

近年多項重大國際稅務發展，例如稅基侵蝕與利潤移轉 (BEPS 2.0)等，對香港的稅務規則帶來影響。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表示：「政府應繼續接觸受影響的企業，確保他們對新稅法如何在香港實施有清晰的理解。此外，政府亦需要為受影響的納稅人做好準備，預留充足的過渡時間，及提供足夠的宣傳及公眾教育，以應對這些轉變，以確保有更大的確定性。」

緩解市民負擔 促進市場交投及發展

支持綠色金融發展

公會歡迎政府推出多項措施，支持香港綠色金融發展。例如，制訂實施國際可持續披露準則的路線圖。我們認同準確披露可持續相關信息至關重要，加快制訂準則有助深化綠色和可持續金融的發展。另外，延續「綠色和可持續金融資助計劃」，並擴大資助範圍至轉型債券及貸款，均有助推動區內相關行業利用香港的轉型融資平台逐步減碳。

推動綠色城市發展
公會樂見財政預算案提出多項措施推動綠色城市發展，包括延續電動車「一換一」補貼計劃，以及於未來兩年，繼續全數豁免其他種類的電動車，包括電動商用車、電動電單車和電動機動三輪車的首次登記稅，相信有助鼓勵市民更廣泛地使用電動車，加快推進建設綠色城市的步伐。對於電動車「一換一」補貼計劃寬減額將下調百分之四十，公會理解在現時電動車價格下調和車款選擇增加等的情況下，修訂寬減額屬於合理，不過，在政府訂立將於2035年或之前停止新登記燃油或混能車之下，公會期望政府繼續推出更多措施，盡可能鼓勵香港駕駛者轉用電動車，例如擴展充電設施。

撤銷物業印花稅

當年政府實施針對地產銷售的額外特別印花稅的原意是為了遏止投機及緩和樓價進一步上升；公會認為，目前現時在市場上沒有明顯投機活動的信號，然而，我們相信現時樓市疲弱，主要受到其他因素例如市場缺乏信心、高息環境、賣地成績不理想及環球不明朗等影響。公會相信撤銷物業印花稅措施不會對樓市帶來即時影響，不過，措施將向市場釋放訊號，在仍然相對高息的環境下改善投資者信心，刺激樓市交投，惟期望政府繼續留意樓市走勢，並持續檢視。

紓困措施

本港仍未完全走出疫情帶來的打擊，惟政府面對一定的財政壓力。預算案減少紓困措施，例如將薪俸稅稅款寛減額由往年6,000港元下調至3,000港元，公會認為有關調整幅度，在現行的經濟狀況下屬務實之舉。然而，為減輕納稅人的經濟負擔，公會認為政府可檢討其他免稅額（如個人及供養父母免税額），並以通脹率作為參考基礎；亦可考慮增加初生子女免稅額，收鼓勵生育之效。

利得稅下的開支扣除和免稅額

公會歡迎政府採納公會的建議，容許為還原租用物業至租用前狀況所招致的開支，提供稅務扣減，並取消工業、商業建築物及構築物的免稅額的申索期限。公會認為，措施將有助塑造更有利的營商環境及促進經濟增長。

善用海濱資源

公會樂見預算案採納建議，以試驗形式於合適的海濱地點引入餐飲、零售和娛樂等商業設施，為旅客帶來便利和帶來更好的旅遊體驗，相信可善用海濱資源，並促進地區經濟，為旅遊業帶來活力。

^{香港會計師公會會長梁思傑資深會計師（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2024-25年度財政預算案。}