How does Hong Kong government get its funding?

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  1. #1

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    How does Hong Kong government get its funding?

    In Canada, we have to pay very high income taxes (over 30% Federal+Provincial combined for a middle class single person), and sales taxes (13% Federal+Provincial).

    While in Hong Kong, the income tax is only 16% for domestic income (0% for foreign income!) and the sales tax is 0%.

    How does the Hong Kong government get its funding? Are they just more efficient or is there some other hidden tax somewhere?


  2. #2

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    Remember healthcare is not free, difference in size of countries, not that many government schools compared to Canada. Oh and the government is not sent all around the world, won't go further than Beijing.

    Lots of rich people in Hong Kong paying a good chunk of tax.


  3. #3

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    Quote Originally Posted by HKChigger:
    Remember healthcare is not free
    Er, yes it is (more or less) - people may choose to buy private health care but that is true anywhere. There are plenty of good public hospitals & clinics which are what the vast majority of the population use.

    The main source of the government's income is land/property taxes, which is one reason why rents are so high.

  4. #4

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    ..and I don't think the government in HK is not as rich as Singapore government


  5. #5

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    Also no defense budget, minimal social security provisions, and high growth rates for years until 1998 onwards.


  6. #6

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    Hong Kong Govt sources of earnings from the top of my mind

    From http://www.budget.gov.hk/2006/eng/pdf/sum_p_e.pdf

    Total Revenue of the Govt: HK$ 205 Billion
    Total Expenses: HK$ 210 billion


  7. #7

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    >> no defense budget, minimal social security provisions, and high
    >> growth rates for years until 1998 onwards

    With that .. go figure where $210 billion is spent ..


  8. #8

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    Well another document on that site breaks the biggest parts as follows:

    Education: $48bn
    Social welfare: $35bn
    Health: $30bn
    Security: $23bn
    Infrastructure: $11bn
    Economic (whatever that is): $11bn
    Housing: $10bn
    Environment: $9bn
    ...
    http://www.budget.gov.hk/2006/eng/pdf/appen2.pdf


  9. #9

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    Would it be so that General Revenue does not include revenue from land sales and land rent? And infrastructure projects are funded from those, or how was it?


  10. #10

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    There's no hypothecation as far as I know - all the income goes into a big pot and all the expenditure comes out of it.


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