Hong Kong, Jan. 19, 2026 — PwC has released its recommendations for the 2026/27 Hong Kong Budget, emphasizing strategies to boost growth and capture future opportunities. The firm forecasts a consolidated deficit of HK$200 million for the 2025/26 fiscal year, significantly lower than the government’s initial projection of HK$67 billion.
PvC attributes the smaller deficit to stronger-than-expected stamp duty revenues, projected at HK$100 billion, offsetting lower land premium and profits tax collections. Fiscal reserves are expected to reach HK$654.1 billion by March 31, 2026, equivalent to about 10 months of government expenditure, matching the lowest level on record.
The firm recommends measures to strengthen Hong Kong’s position as a global gateway and financial hub, including stamp duty exemptions for market intermediaries, tax neutral treatment for securitization projects, and preferential tax deductions for artificial intelligence and R&D investments. PwC also proposes half-tax concessions for regional headquarters and enhancements to family office incentives to attract global talent and capital.
