The world’s freest economy is slashing its already-low taxes after a $12 billion surplus surprise

The world’s freest economy is slashing its already-low taxes after a $12 billion surplus surprise, by Zheping Huang.

Thanks to its low and simple taxation, Hong Kong has topped the Heritage Foundation’s rankings of the world’s freest economies for 23 years in a row. An announcement made yesterday will do nothing to hurt its position.

cuba vs hong kong

According to forecasts from its finance ministry, Hong Kong will post a surplus of HK$92.8 billion (US$12 billion) for the fiscal year ending March 31. …

Finance secretary Paul Chan cited a “period of hectic trading in the property market.” He noted the vast majority of the surplus will come from the “far higher-than-expected” land revenue and stamp duties on property …

Hong Kong has only three direct taxes in place, and a host of generous deductions. Its income tax, which applies only to salaries, is capped at 15%, compared to 45% in the UK.

hat-tip Matthew