Hong Kong lawmakers say 5-year tax incentive too short to entice major innovative firms

Hong Kong lawmakers have supported the government's proposed tax incentives aimed at attracting large innovative companies. However, many expressed concern on Monday that the five-year concession period is insufficient to entice major firms to set up headquarters or expand operations in the city. Chief Executive John Lee Ka-chiu announced last month that the government intends to introduce a bill offering preferential profits tax rates of 5% or 8.25%, which is half the standard rate. The core issue raised by lawmakers is the duration of this incentive, which they believe needs to be longer to be truly effective in attracting significant investment.