Hong Kong finance chief Paul Chan dials down budget relief measures after smaller surplus
- Minister offers taxpayers HK$33.9 billion in rates and tax concessions, nearly HK$10 billion less than last year’s package
Hong Kong finance chief Paul Chan Mo-po scaled back the usual sweeteners in this year’s budget, given projections of slower economic growth and a smaller fiscal surplus.
He offered taxpayers HK$33.9 billion (US$4.3 billion) in rates and tax concessions, nearly HK$10 billion less than last year’s HK$43.3 billion package.
Individual earners will again enjoy a 75 per cent reduction in salaries tax for 2018-19 but subject to a lower ceiling of HK$20,000, compared to last year’s HK$30,000. The concession affects about 1.91 million taxpayers and will cost the government HK$17 billion in forgone revenue.
For businesses, taxes on profits will again be slashed by 75 per cent subject to a ceiling of HK$20,000, down from last year’s HK$30,000. It will benefit 145,000 taxpayers and cost the government HK$1.9 billion. Business registration fees will also be waived.
Economists said the less generous budget was reasonable in light of the smaller surplus, but lawmakers from across the political spectrum gave the thumbs down, with one saying the sweeteners were “as plain as water”.
