Revenue
 
 

Our economy recovered throughout 2004. This, coupled with the implementation of phase II tax increase measures introduced in the 2003-04 Budget, has boosted our Earnings and Profits Tax collection to a record high. There was an increase of $16.2 billion in Earnings and Profits Tax collections, representing a growth of 20.2% as compared with the previous year (Figure 1, Schedules 1 and 2 ) . The booming property and stock markets in the year also brought about a substantial increase of $4.6 billion in stamp duty collections.

 
 
 

2001-02

2002-03

2003-04

2004-05
Type of tax ($m) ($m) ($m) ($m)
Profits Tax-
   Corporations 39,272.4 33,692.9 43,666.3 52,562.2
   Unincorporated Businesses 5,103.3

5,106.6

5,103.7

6,077.5

Salaries Tax

28,634.6

29,733.1

 27,976.9 33,990.5
Property Tax

1,135.7

1,180.1

 983.0 1,115.6
Personal Assessment

3,603.0

3,315.9

 2,744.4

2,963.4
Total Earnings & Profits Tax 77,749.0

73,028.6

 80,474.3

96,709.2
Estate Duty 1,927.8

1,402.7

 1,455.3

1,468.4
Stamp Duty

8,636.6

7,458.2

11,245.4

15,851.4
Betting Duty

11,571.3

10,920.7

11,635.9

12,057.2
Business Registration Fees

1,240.2

127.7

1,233.3

1,348.7
Hotel Accommodation Tax

202.9

201.0

155.6

247.4
Total revenue collected

101,327.8

93,138.9

106,199.8

127,682.3
% change over previous year 0.9%

-8.1%

14.0%

20.2%

 

Overall, revenue collected by the Department during 2004-05 totalled $127.7 billion (about 60% of the Government General Revenue, see Figure 2 ). This represents an increase of $21.5 billion or 20.2%, from that collected in the previous year. The major part of the revenue collected came from Profits Tax and Salaries Tax, which together contributed 72.5% (Figure 3) .

 

 

 

Total Government General Revenue

This is a bar-chart showing Total Government General Revenue for 2001-02 to 2004-05. The figures are as follows: 2001-02 is $157 billion, including 64.7% from IRD collections, 2002-03 is $148 billion, including 63.1% from IRD collections, 2003-04 is $295 billion (a transfer of $120 billion from the Land Fund included), 36.0% from IRD collections, 2004-05 is $230 billion, including 55.6% from IRD collections.

 

* including a transfer of $120 billion from the Land Fund
This is a pie-chart showing percentage composition of the IRD collections in 2004-05. The figures are as follows: 45.9% from Profits Tax, 26.6% from Salaries Tax, 12.4% from Stamp Duty, 9.4% from Betting Duty, 5.7% from Others.
This is a bar-chart showing cost of collection for 2001-02 to 2004-05. The figures are as follows: 2001-02 is 1.39%, 2002-03 is 1.38%, 2003-04 is 1.14%, 2004-05 is 0.86%.
 

With material productivity savings and an increase in revenue collections during the year, the cost of collection of revenue decreased from 1.14% to 0.86% (Figure 4) .