Financial Secretary John Tsang today announced $34 billion in relief measures in the 2015-16 Budget.
The 2014-15 salaries tax and tax under personal assessment will be reduced by 75%, with a ceiling of $20,000. This would benefit 1.82 million tax payers and reduce government revenue by $15.8 billion.
Mr Tsang also announced a 75% reduction in profits tax for 2014-15, subject to a ceiling of $20,000. The move would benefit about 130,000 taxpayers and reduce government revenue by $1.9 billion.
The government will also waive rates for the first two quarters of 2015-16, capped at $2,500 per quarter for each rateable property. About 3.15 million properties are eligible and government revenue would be reduced by $7.7 billion.
Comprehensive Social Security Assistance, Old Age Allowance, Old Age Living Allowance and Disability Allowance recipients will receive an extra two months of payments. This would result in additional expenditure of $5.5 billion.
The Government will pay one months' rent for lower-income tenants living in Housing Authority and Housing Society rental units, involving an expenditure of about $1.1 billion.
The finance chief also announced an increase in basic and additional child allowances, from $70,000 to $100,000, beginning in 2015-16. This measure would reduce government revenue by $2 billion a year.
Mr Tsang said the relief measures should help alleviate the financial burden on the public, stimulate consumption, stabilise the economy and preserve employment.
"Together with other measures in the Budget, they will have a fiscal stimulus effect of boosting GDP by one percentage point," he added.
