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Topical Issues

Concept and Measurement of Poverty

Effects of Taxation and Social Benefits on Household Income Distribution

The statistics on the profile of low-income employees are compiled primarily on the basis of employment earnings reported in surveys. Currently, there is no detailed data for assessing the income of the low-income group after adjusting for Government benefits/transfers vis-à-vis the income of those just above the thresholds who are not eligible for receiving such benefits.

To this end, the Census and Statistics Department has undertaken a study on “Effects of Taxation and Social Benefits on Household Income Distribution” in order to examine the adjustment on household income with respect to the effects of taxation and social benefits (such as education, housing and medical benefits). The household income distribution based on the adjusted figures would provide additional information on the situation of income disparity in Hong Kong. Details are here.