Hong Kong’s government is weighing another tax increase for top earners to address a growing budget deficit, sources said. Officials have floated raising the 16% tax rate on incomes over HKD5m or lowering the threshold to include more taxpayers, though no final decisions have been made. The Financial Secretary’s Office said diverse proposals were received during budget consultations but declined to comment on specifics. A similar hike last year raised the top rate for the first time in two decades, affecting 0.6% of taxpayers. Financial Secretary Paul Chan emphasised balancing competitiveness with fairness, noting high earners should bear more responsibility. Facing a deficit near HKD100bn (USD12.84bn), the government plans to unveil the budget on February 26, with austerity measures likely.