Hongkongers will not receive perks such as consumption vouchers as the government scaled back one-off relief measures offered to the public during the Covid-19 pandemic.
Finance chief Paul Chan did not mention the consumption voucher scheme when he unveiled tax cuts and other relief measures for residents while delivering his annual budget speech to the legislature on Wednesday.
Salaries and profits tax is set to be reduced by 100 per cent, subject to a ceiling of HK$3,000, which is half of last year’s HK$6,000.
The proposal would benefit 2.05 million taxpayers and reduce government revenue by HK$5.1 billion, Chan said in Cantonese.
Chan proposed allowances for residents living on social security, the elderly, and disabled people, as well as low-income households, which he said would involve an additional cost of HK$3 billion.
Consumption vouchers or cash handouts ranging from HK$5,000 to HK$10,000 were given to residents for three consecutive years amid the Covid-19 outbreak in a bid to boost local consumptions.
Chan said earlier this month that people the government heard from during a consultation period did not think that more consumption vouchers were unnecessary. The government must also consider whether it could afford such measures, he added.
Hong Kong is expected to log a shortfall of over HK$100 billion in the current fiscal year ending in March, almost double the forecast given by the government last year.
Hong Kong Budget 2024 in full:
- City expects HK$101.6 billion deficit as land sales revenue dip
- City’s economy grew by 3.2% last year, inflation ‘moderate’
- Finance chief asks for ‘understanding’ over lack of sweeteners
- Costly transport subsidy schemes face review amid HK$100 billion deficit
- Artificial islands project delayed, finance chief Paul Chan says, but will go ahead
- Tobacco tax rises for second consecutive year to put public off smoking
- Higher salaries tax rate for those earning over HK$5 million annually
- No consumption vouchers as relief measures scaled back
- City seeks to bring back 3% hotel tax to increase revenue
- Extra stamp duties axed in bid to revive housing market
- Over HK$1.1 billion to ‘soft sell’ city, inc. monthly drone and fireworks shows
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