February 5, 2007 2:47PM 

# Hong Kong to Lower Flat Tax? 

By [Daniel J. Mitchell](https://www.cato.org/people/daniel-mitchell) 

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Thanks to strong growth, which is in part due to a tax system that minimizes the burden on productive activity, Hong Kong leaders are considering reducing the flat tax to just 15 percent.

[*Tax​-news​.com* reports](http://www.tax-news.com/asp/story/story_open.asp?storyname=26263):

> Donald Tsang has pledged to cut Hong Kong’s individual and corporate income taxes if re-elected as the Special Administrative Region’s Chief Executive next month. Tsang officially announced that he would seek election to a second term of office last week and said that one of his key policies would be to return some of Hong Kong’s fiscal surplus back to the population through a “gradual” reduction in salary and profit taxes to 15%.

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[Tax and Budget Policy](https://www.cato.org/tax-budget-policy) 

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