HONG KONG: Chief Executive-elect Carrie Lam makes tax reform her first order of business

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Hong Kong’s Chief Executive-elect Ms Carrie Lam says lowering the levy on profits will boost the city’s competitiveness and plans to host a summit to find ways to create competition and stimulate economic growth using new taxation methods. Giving her first public speech after winning the election last week, she explained the two major tax reforms, as proposed in her manifesto. The first is a two-tier income tax system that aims to reduce the burden on SMEs and start-ups. Additionally, she will lower the tax rate on the first HK $2 million income from 16.5% to 10%.