HONG KONG, May 3 (Xinhuanet) -- A total of 127.7 billion HK dollars (16.37 billion US dollars) in tax was collected in 2004-05, up 21.5 billion HK dollars (2.75 billion US dollars) on the previous year, Hong Kong Commissioner of Inland Revenue Alice Lau said on Tuesday.

Total earnings and profits tax for the year was 96.7 billion HK dollars(12.39 billion dollars), up 20 percent, according to a government press release on Tuesday.

Lau attributed the rise to the economic rebound and an increasein the tax rate for corporate profits.

Lau said individual Tax Return notices for 2004-05 have been issued and should be submitted by June 3, or for sole proprietors of unincorporated businesses, by Aug. 3.

E-filing system performance has been upgraded, its screen flow redesigned and over 40 new functions and improvements introduced from feedback garnered from 20,000 users.

"With the improvements, I sincerely hope 'people' will give e-filing a try,"Lau said.

To encourage e-filing, the department will grant a two-week extension to taxpayers who file their individual tax returns electronically. The deadline for e-filers will be extended to June17.

Hong Kong adopts a provisional tax system. According to an earlier government press release, the tax is paid in arrears according to an estimate of income already received. In fact, 75 percent of provisional tax for any year is payable only after the ninth month of that year with the reminder due after the 12th month.