On 2 February 2012 Hong Kong’s Financial Secretary unveiled a 2012/13 Budget which proposes a wide range of tax concessions aimed at supporting businesses and individuals, who face a possible global economic slowdown.
The Financial Secretary said Hong Kong’s economy grew by 5% in 2011, but forecast gross domestic product (GDP) growth to slow to between 1% and 3% this year, mainly due to the sluggish European and US economies.
Government expenditure is estimated to reach HKD393.7bn for 2012–13, an increase of 7% compared with the revised estimate for 2011–12 and some 21.4% of GDP, while total government revenue will be HKD390.3bn.
To help reduce operating costs, enhance competitiveness and preserve jobs, the Financial Secretary also proposed to waive business registration fees for 2012-13 and abolish capital duty levied on local companies to encourage investors to set up companies in Hong Kong.
