Lifting taxes to shore up finances chinadaily.com.cn | Updated: 2021-03-05 16:18 Share CLOSE
The Hong Kong Special Administrative Region government last month rolled out a further HK$120 billion (US$15.4 billion) relief stimulus package to prop up the pandemic-ravaged economy and lift economic growth by 2 percent.
As a result, the budget deficit for the 2021-22 financial year is expected to reach HK$101.6 billion, accounting for 3.6 percent of the city s GDP, due to the countercyclical measures and the continued rise in recurrent expenditure.
The government also offered a list of sweeteners , including HK$5,000 worth of electronic consumption vouchers for each eligible Hong Kong permanent resident and new arrivals aged 18 or above; cuts in salaries tax, capped at HK$10,000; a 100 percent reduction in profits tax, capped at HK$10,000, that will benefit nearly 130,000 enterprises; an extra half-a-month pay in welfare allowances; as well