Hong Kong is rolling out a new tax break for commodity traders as it seeks to strengthen its position as a regional trading hub and revive shipping activity amid global supply chain disruptions.
The government plans to introduce a concessionary regime for qualifying traders of physical commodities, halving the tax rate on their profits to 8.25% from the standard 16.5% on eligible trading activities. The scheme will cover key sectors including mining commodities and is aimed at attracting global players to set up or expand operations in the city.
Officials see the move as closely tied to Hong Kong’s maritime ambitions.
Commodity trading is integral to the maritime industry, Moses Cheng, chairman of the Hong Kong Maritime and Port Development Board, told CNBC.
By drawing more traders to Hong Kong, authorities expect a knock-on boost to shipping demand. “By introducing this tax concession… it would enhance the volume of shipping activities that are needed, and that would undoubtedly benefit the maritime industry,” Cheng said.
