Here is how you and businesses will benefit from Hong Kong budget sweeteners hike
Authorities will offer sweeteners of about HK$22 billion to residents and businesses, up from HK$7.8 billion
Hong Kong authorities will offer sweeteners of about HK$22 billion (US$2.8 billion) to residents and businesses, up from HK$7.8 billion last year, as public coffers are set to pivot from a deficit to a surplus.
Financial Secretary Paul Chan Mo-po on Wednesday announced a raft of tax concessions and allowances in his annual budget, almost three times what was offered last year.
“Hong Kong’s economy shows steady and stable progress, but there are still imbalances and insufficiencies during economic transformation,” he said. “Some residents and enterprises are still facing relatively big challenges.”
“As public finance has improved, we wish to support residents and small-to-medium-sized enterprises within our capabilities while upholding the principle of financial prudence.”
The public coffers are expected to record a consolidated surplus for financial years 2025-26 and 2026-27, despite a capital account deficit over the same period.
According to the budget, the government would continue to offer a 100 per cent reduction in profit tax, salaries tax and tax under personal assessment in the assessment year 2025–26. The ceiling has been doubled to HK$3,000.