Hong Kong – LegCo to consider Revenue (Tax Concessions) Bill 2022

Apr 5, 2022 | International

LegCo to consider Revenue (Tax Concessions) Bill 2022

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The following is issued on behalf of the Legislative Council Secretariat:



     The Legislative Council (LegCo) will conduct a remote meeting by videoconferencing on Wednesday (April 6) at 11am. During the meeting, the Second Reading debate on the Revenue (Tax Concessions) Bill 2022 will resume. If the Bill is supported by Members and receives its Second Reading, it will stand committed to the committee of the whole Council. After the committee of the whole Council has completed consideration of the Bill and its report is adopted by the Council, the Bill will be set down for the Third Reading.



     On Members’ motions, Mr Tang Ka-piu will move a motion on reforming the poverty alleviation policies and strategies of Hong Kong. The motion is set out in Appendix 1. Mrs Regina Ip, Mr Stanley Ng, Mr Dennis Leung, Mr Stanley Li, Dr Priscilla Leung, Mr Lam Chun-sing, Ms Yung Hoi-yan and Mr Tang Fei will move separate amendments to Mr Tang Ka-piu’s motion.



     Ms Starry Lee will move a motion under Rule 49E(2) of the Rules of Procedure to take note of a report of the House Committee in relation to the subsidiary legislation and other instruments. The motion is set out in Appendix 2.



     Members will also ask the Government 22 questions on various policy areas, six of which require oral replies.



     The agenda of the above meeting can be obtained via the LegCo Website (www.legco.gov.hk). Members of the public can watch or listen to the meeting via the “Webcast” system on the LegCo Website. The relevant video footage will also be available for public access via the system after the meeting. Archive of the meeting with Putonghua, English and sign language interpretation will be uploaded to the LegCo Website in due course.

Revenue Deficit Grant of Rs.9,871 crore released to 17 States

Aug 10, 2021 | Business

The Department of Expenditure, Ministry of Finance has released 5th  monthly installment of Post Devolution Revenue Deficit (PDRD) Grant of Rs. 9,871 crore to the States on 9th August, 2021.  With the release of this installment, a total amount of Rs. 49,355 crore has been released to eligible States as Post Devolution Revenue Deficit Grant (PDRD) in the current financial year.

State-wise details of the grant released this month and total amount of PDRD Grant released to the States in 2021-22 is annexed.

The Post Devolution Revenue Deficit Grant is provided to the States under Article 275 of the Constitution. The grants are released as per the recommendations of the Fifteenth Finance Commission in monthly installments to meet the gap in Revenue Accounts of the States post devolution.  The Commission has recommended PDRD grants to 17 States during 2021-22.

The eligibility of States to receive this grant and the quantum of grant was decided by the Commission based on the gap between assessment of revenue and expenditure of the State after taking into account the assessed devolution for the financial year 2021-22.

 The Fifteenth Finance Commission has recommended a total Post Devolution Revenue Deficit Grant of Rs. 1,18,452 crore to 17 States in the financial year 2021-22.  Out of this, an amount of Rs. 49,355 crore (41.67%) has been released so far. 

The States recommended for PDRD Grant by the Fifteenth Finance Commission are : Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttarakhand and West Bengal.

State-wise Post Devolution Revenue Deficit Grants Released

S.No.

Name of State

Amount released in July 2021

(5th installment)

(Rs. in crore)

Total amount released during 2021-22

(Rs. in crore)
 

Andhra Pradesh

1438.08

7190.42
 

Assam

531.33

2656.67
 

Haryana

11.00

55.00
 

Himachal Pradesh

854.08

4270.42
 

Karnataka

135.92

679.58
 

Kerala

1657.58

8287.92
 

Manipur

210.33

1051.67
 

Meghalaya

106.58

532.92
 

Mizoram

149.17

745.83
 

Nagaland

379.75

1898.75
 

Punjab

840.08

4200.42
 

Rajasthan

823.17

4115.83
 

Sikkim

56.50

282.50
 

Tamil Nadu

183.67

918.33
 

Tripura

378.83

1894.17
 

Uttarakhand

647.67

3238.33
 

West Bengal

1467.25

7336.25

Total

9,871.00

49,355.00

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GST Revenue collection for July 2021

Aug 2, 2021 | Business

The gross GST revenue collected in the month of July 2021 is ₹ 1,16,393 crore of which CGST is ₹ 22,197 crore, SGST is ₹ 28,541 crore, IGST is ₹ 57,864 crore (including ₹ 27,900 crore collected on import of goods) and Cess is ₹ 7,790 crore (including ₹ 815 crore collected on import of goods).The above figure includes GST collection received from GSTR-3B returns filed between 1st July 2021 to 31st July2021 as well as IGST and cess collected from imports for the same period.

The GST collection for the returns filed between 1st July to 5th July2021 of ₹ 4,937 crore had also been included in the GST collectionin the press note for the month of June2021since taxpayers were given various relief measures in the form of waiver/reduction in interest on delayed return filing for 15 days for the return filing month June21 for the taxpayers with the aggregate turnover uptoRs. 5 crore in the wake of covid pandemic second wave.

The government has settled ₹ 28,087 crore to CGST and ₹ 24100 crore to SGST from IGST as regular settlement. The total revenue of Centre and the States after regular settlement in the month of July’ 2021 is ₹ 50284 crore for CGST and ₹ 52641 crore for the SGST.

The revenues for the month of July 2021 are 33% higher than the GST revenues in the same month last year. During the month, revenues from import of goods was 36% higher and the revenues from domestic transaction (including import of services) are 32% higher than the revenues from these sources during the same month last year.

GST collection, after posting above Rs. 1 lakh crore mark for eight months in a row, dropped below Rs. 1 lakh crore in June 2021 as the collections during the month of June 2021 predominantly related to the month of May 2021 and during May2021, most of the States/UTs were under either complete or partial lock down due to COVID. With the easing out of COVID restrictions, GST collection for July2021 has again crossed₹1 lakh crore, which clearly indicates that the economy is recovering at a fastpace.The robust GST revenues are likely to continue in the coming months too.

The table shows the state-wise figures of GST collected in each State during the month July 2021 as compared to July 2020.

State-wise growth of GST Revenues during July2021[1]

Sr No

State

Jul-20

Jul-21

Growth

1

Jammu and Kashmir

298

432

45%

2

Himachal Pradesh

605

667

10%

3

Punjab

1,188

1,533

29%

4

Chandigarh

137

169

23%

5

Uttarakhand

988

1,106

12%

6

Haryana

3,483

5,330

53%

7

Delhi

2,629

3,815

45%

8

Rajasthan

2,797

3,129

12%

9

Uttar Pradesh

5,099

6,011

18%

10

Bihar

1,061

1,281

21%

11

Sikkim

186

197

6%

12

Arunachal Pradesh

33

55

69%

13

Nagaland

25

28

11%

14

Manipur

25

37

48%

15

Mizoram

16

21

31%

16

Tripura

48

65

36%

17

Meghalaya

120

121

1%

18

Assam

723

882

22%

19

West Bengal

3,010

3,463

15%

20

Jharkhand

1,340

2,056

54%

21

Odisha

2,348

3,615

54%

22

Chattisgarh

1,832

2,432

33%

23

Madhya Pradesh

2,289

2,657

16%

24

Gujarat

5,621

7,629

36%

25

Daman and Diu

77

-99%

26

Dadra and Nagar Haveli

130

227

74%

27

Maharashtra

12,508

18,899

51%

29

Karnataka

6,014

6,737

12%

30

Goa

257

303

18%

31

Lakshadweep

2

1

-42%

32

Kerala

1,318

1,675

27%

33

Tamil Nadu

4,635

6,302

36%

34

Puducherry

136

129

-6%

35

Andaman and Nicobar Islands

18

19

6%

36

Telangana

2,876

3,610

26%

37

Andhra Pradesh

2,138

2,730

28%

38

Ladakh

7

13

95%

39

Other Territory

97

141

45%

40

Center Jurisdiction

179

161

-10%
 

Grand Total

66,291

87,678

32%

[1]Does not include GST on import of goods

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Hong Kong – Inland Revenue Department waives surcharges for payment of tax by instalments for businesses and individuals in need

Jun 18, 2021 | International

Inland Revenue Department waives surcharges for payment of tax by instalments for businesses and individuals in need

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     The Inland Revenue Department (IRD) has started issuing the tax demand notes for the year of assessment 2020/21. Taxpayers who encounter financial difficulties in settling their tax bills on time may apply for payment of tax by instalments before the due dates of the demand notes. For taxpayers who have obtained the IRD’s approval for instalment settlement of the demand notes for Salaries Tax, Profits Tax and Personal Assessment for the year of assessment 2020/21 issued between May 2021 and May 2022, no surcharge will be imposed for a maximum period of one year counted from the respective due dates of the demand notes, provided that the instalment plans are duly adhered to. Further, the IRD has extended the applicability of the previous support measures to waive the surcharge for instalment settlement of demand notes for the years of assessment 2018/19 and 2019/20 as follows:
 

Year of assessment Date of issue of demand note
2018/19 From December 2019 to May 2022
2019/20 From August 2020 to May 2022

     
     For taxpayers who need to apply for payment of tax by instalments, please complete the application form and return it together with the required supporting information and documents to the IRD. Relevant details are available on the IRD’s webpage (www.ird.gov.hk/eng/tax/cws4.htm).

     For further information, please call the Enquiry Hotline at 187 8033.

     The above support measure is not applicable to individuals who have to settle their tax liabilities before departing Hong Kong and taxpayers paying property tax.

Man Wah FY2021 Revenue from Main Business Up 35% to HK$16.4 Billion Despite Harsh Market Conditions, Net Profit Rises to HK$1.92 Billion

May 15, 2021 | Business

Man Wah Holdings Limited (“Man Wah” or the “Group”, stock code: 1999) today announced its audited annual results for the year ended 31 March 2021 (“FY2021” or the “Review Year”). During the Review Year, Man Wah actively promoted the development of its domestic business, enabling the Group to overcome effectively the adverse external impact on its business. The Group’s market share in China’s recliner sofa market has expanded to 59%, an achievement which has made it the world’s top seller of recliner sofas for three consecutive years.

In FY2021, the Group’s sales revenue (excluding those from real estate, malls and other businesses) increased by 35.3% to HK$16.43 billion as it received a strong boost from sales revenue in the China market where revenue significantly increased by approximately 61.9%. Profit Attributable to Owners of the Company expanded by 17.5% to HK$1.92 billion. Net profit margin was approximately 11.7%. As of 31 March 2021, the Group was in a sound financial position, with a bank balance and cash of approximately HK$2.4 billion, and a current ratio at 1.4.

To reward shareholders for their long-term support, the Board has proposed a final dividend of HK16 cents per share. Together with the interim dividend of HK10 cents that was already paid, the total dividend for the year amounted to HK26 cents per ordinary share, representing a dividend payment ratio of 52.7% and an increase of 8.4 percentage points compared to the dividend payment ratio of 44.3% in the previous year.

Business Review

China Market
During the Review Year, China’s overall economy faced daunting challenges posed by the pandemic, but opportunities emerged as consumption recovered and demand for household products expanded. By employing effective store expansion, marketing and store operation, vigorous development of e-commerce sales, and active promotion of business model innovation, the Group gained more market share in the Chinese furniture market and it achieved strong revenue growth. Revenue from its main business in the China market expanded by 61.9% to HK$9.98 billion, accounting for more than 60% of the Group’s total revenue during the Review Year, and serving as its principal growth driver.

As of 31 March 2021, the Group had a total of 4,122 “CHEERS First-class Cabin” brand sofa and “CHEERS Five-star Mattress” brand stores in China. During the Review Year, the Group achieved a net increase of 1,125 in the number of its brand stores.

As regards online sales, the Group continued to enhance its sales on Tmall, JD.com and other e-commerce sales platforms, and it also actively promoted the live broadcast sales model. Using short video promotions, live broadcasts of its own stores, and in-depth collaboration with leading online streamers, the Group achieved a substantial expansion of business volume, fans base and brand influence. In addition, the Group also made active deployments in new retail business and it also undertook an integration of its online and offline business, a strategic move which drove online sales to grow by a very hefty approximate of 41.0% to HK$2.19 billion.

North America market
Although the Group’s business was adversely affected by its strategy of shifting from exports to domestic sales amid the pandemic overseas, its export orders to North America resumed their rapid growth in the second quarter of 2020, marked notably by sales revenue of its main business from the North America market which rose by approximately 30.5% to HK$4.58 billion. The capacity of the Group’s new plant in Vietnam, which started operating in 2020, increased rapidly, with most of the productions carried out for the U.S. customers have been basically transferred to the Vietnam plant, effectively mitigating the adverse impact of tariffs imposed by the US government.

Europe and other Overseas Markets
During the Review Year, the Group’s revenue in Europe was inevitably affected by the impact of Brexit and COVID-19. However, revenue from its main business (excluding that from the Home Group) in Europe and other overseas markets only decreased by 6.5% to HK$876.6 million.

The Home Group had five sofa manufacturing plants in Poland, the Baltic States and Ukraine which are mainly engaged in the design and production of stationary sofas and sofa beds. Products of the Home Group are sold to many European furniture retailers. Revenue from its main business increased by 2.7% from the level in the same period last year.

Prospects
China’s large population has indeed created a huge consumer market. In view of this, the Group will continue to strengthen its core competitiveness and branding in recliner sofas to maintain its leading position in the industry. It will also continue to raise its core competitiveness and build stronger barriers by further enhancing innovation and intelligent automation of iron frames and motors, representing moves that will ultimately reduce product costs and enable the attainment of price advantages. Since recliner sofas provide higher cost-performance and better styles, coupled with the introduction of e-commerce, live streaming, TikTok, and other measures, the Group has accelerated the exposure and recognition of recliner sofas. Looking ahead, Man Wah will continue to improve consumer experience on recliner sofas in both offline and online stores via experimental scenarios so as to create a better sales conversion rate.

With the easing of the pandemic and recovery of the economy, the export markets for recliner sofa will gradually pick up, with orders resuming their growth. In view of this, Man Wah has established its own brand “MW Home” in the North American market, and its export sales have posted growth. The Group also plans to expand its exports of stationary sofas, and produce more diversified and competitive products, as well as actively exploring more new customers, so as to maintain stable development of its export business.

Dr. Wong Man Li, Chairman of Man Wah, said, “Chinese consumers are giving more focus on comfort from household products. In view of this growing demand, the Group will continue focusing on stationary sofas, but it has also added more experiential functions and improved comfort of its recliner sofa products, providing consumers with a much enhanced experience. Thanks to the self-supply of core components, we are able to offer recliner sofas at more cost-effective prices to a wider range of families, while meeting rigid market demands. In the current market marked by low market share and differentiation, we insist on creating differentiated products and experiences for consumers in order for the Group to better achieve scale advantages and accelerate the penetration rate of our products in the soft market in the future, and bring better returns to our shareholders.”


Topic: Press release summary