The Hong Kong economy staged a full recovery in 2010-11 and the earnings and profits tax collection reached $143 billion, an increase of $19.8 billion or 16.1% from the previous year. The bullish stock market and property market brought in stamp duty revenue of $51 billion, a year-on-year growth of 20.3%. Overall, the total revenue collected by IRD in the year climbed to $209 billion, $29.9 billion or 16.7% above the last year's (Figure 1, Schedules 1 and 2).


Figure 1  Revenue collected by tax type

  Type of tax 2007-08
($m)		   2008-09
($m)		   2009-10
($m)		   2010-11
($m)		  
  Profits tax –                
 
Corporations
86,775.6   99,294.4   72,224.3   88,191.4  
 
Unincorporated businesses
4,647.1   4,857.1   4,381.1   4,991.7  
  Salaries tax 37,479.5   39,007.9   41,245.4   44,254.7  
  Property tax 1,240.6   832.5   1,677.6   1,647.1  
  Personal assessment 3,586.6   2,151.1   3,655.8   3,921.8  
  Total earnings & profits tax 133,729.4   146,143.0   123,184.2   143,006.7  
  Estate duty 353.4   176.0   185.1   212.8  
  Stamp duty 51,549.1   32,162.1   42,382.6   51,005.1  
  Betting duty 13,048.4   12,620.3   12,767.1   14,759.1  
  Business registration fees 1,565.8   154.4   578.7   35.7  
  Hotel accommodation tax (Tax rate reduced to 0% from 1 July 2008) 450.4   222.9   0.0   0.0  
  Total revenue collected
200,696.5
 
191,478.7
 
179,097.7
 
209,019.4
 
  % change over previous year 29.4%   -4.6%   -6.5%   16.7%  

The revenue collected by the Department during 2010-11 accounted for 72% of the Government General Revenue (Figure 2). Profits tax contributed the largest part of the total revenue collected, followed by stamp duty. Together they made up 69% of the total revenue collected (Figure 3).


Figure 2  Government General Revenue




Figure 3  Composition of the revenue collection



With a rise in revenue collections during the year, the cost of collection of revenue dropped from 0.65% to 0.56% (Figure 4).


Figure 4  Cost of collection