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Key announcements in Hong Kong’s budget

Tax cuts

• At least 1.8 million taxpayers will benefit from a 75 per cent reduction in salaries tax, capped at HK$20,000 (S$3,500).

• Profits tax will be reduced by the same amount, benefiting 130,000 taxpayers, while 3.15 million private property owners will also see rates waived for the first two quarters of this year to next year – subject to a HK$2,500 ceiling. These benefits will be felt more acutely by the upper- and middle-income people.

• Basic and additional child allowances were increased from HK$70,000 to HK$100,000 to ease the burden of parents.

Housing

• Owners of subsidised flats may apply for guaranteed loans to pay premiums in the event that they want to sell or lease their homes. Under existing laws, owners of these flats must pay premiums to the Housing Authority or the Housing Society before they can sell or lease their properties.

• Separately, the government will offer 29 residential sites for sale in the coming financial year for private developers to build a total of 16,000 units.

Boosting trade

• The government will inject HK$1.5 billion into the export marketing and development funds for small and medium enterprises this year.        

Savings scheme for the government

• A government savings scheme under the proposed “future fund” could be rolled out this year, with the specifics still to be announced. The fund may be used to pay for infrastructure construction at times of fiscal deficits or address issues related to the city’s ageing population.

Small and medium enterprises (SMEs)

• To support SMEs, the government will further extend the application period for the special concessionary measures under the SMEs. Financing Guarantee Scheme for a year – to run until February next year. The guarantee scheme helps SMEs obtain loans from banks more easily.

• The cap of funding support for each project under the guarantee scheme will be more than doubled – from HK$2 million to HK$5 million.

Fashion

• Resources totalling HK$500 million will be consolidated and invested in launching a series of measures to promote Hong Kong’s fashion designers and brands.

Film

• The government will inject a further HK$200 million into the Film Development Fund and launch a new subsidy scheme for film productions with a budget not exceeding HK$10 million to boost the volume of local film production and nurture film talent. Each application would be subject to a subsidy ceiling of HK$2 million.

Ties with Beijing and Macau

• Hong Kong will fully support Beijing’s Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives.

• Apart from the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and the mainland to liberalise trade in services, Hong Kong will also explore a similar arrangement with Macau. AGENCIES

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