Hong Kong cuts taxes to rival Singapore
Tsang cuts taxes by one percentage point to position HK as Asia’s financial centre
The competition between
Hong
Kong and Singapore for the position as Asia’s financial centre intensified
when Donald
Tsang, its chief executive, announced a one percentage point cut in income
and corporate taxes this week.
Tsang said in his first annual policy address since his election to a
five-year term in March, income tax and corporate tax, would be cut to 15% and
16.5%, respectively in 2008-09.
The reduction is expected to widen the gap with Singapore, which cut its
corporate tax rate by two points in February, to 18%, hoping to attract more
financial services and technology companies.
Tsang pledged in his election campaign to cut the standard rate of income and
corporate taxes to 15% in five years.