The Government will launch a wide range of relief measures to ease the burden on people from across society.
Delivering his 2017-18 Budget today, Financial Secretary Paul Chan said the Government’s fiscal surplus allows it to share the benefits of its economic development with the public, adding the relief measures will stimulate domestic demand, stabilise the economy and support the employment market.
One-off relief measures include reduction of profit tax, salaries tax and tax under personal assessment for 2016-17 by 75%, subject to a ceiling of $20,000.
Property rates will be waived for four quarters of 2017-18, subject to a ceiling of $1,000 per quarter for each rateable property.
Social security recipients will get an extra month's allowance. This applies to social welfare schemes including the Comprehensive Social Security Assistance, Old Age Allowance, Old Age Living Allowance, Disability Allowance, Low-income Working Family Allowance and Work Incentive Transport schemes.
The proposal will incur additional expenditure of $3.5 billion.
For recurrent tax measures, the marginal bands for salary tax will be widened from the current $40,000 to $45,000, which will reduce the tax burden of 1.3 million taxpayers.
The disabled dependant allowance will rise from the current $66,000 to $75,000, which will benefit 35,000 taxpayers.
The dependent brother/sister allowance will increase from the current $33,000 to $37,500, benefiting 23,800 taxpayers.
To help owners of old buildings with maintenance costs, the Government will earmark $300 million to allow them to participate in the “Smart Tender” Building Rehabilitation Facilitating Services Scheme run by the Urban Renewal Authority at a concessionary rate.
Owners of about 4,500 old buildings will benefit from the initiative in the next five years.
Mr Chan also announced the extension of the First Registration Tax Exemption Scheme for electric vehicles after its expiry on March 31. The first registration tax of electric commercial vehicles, motor cycles and motor tricycles will continue to be fully waived.
"However, the first registration tax waiver for electric private cars will be capped at $97,500."
To encourage the public to use private medical care, the Government will provide tax deductions for the purchase of regulated health insurance products, details of which are being examined.
Due to the higher-than-expected fiscal surplus, Mr Chan said he will set aside $30 billion from the surplus to enhance services for the elderly and disabled.
A total of $20 billion from the surplus will see the building and revamp of sports and recreation facilities in the coming five years.
Another $10 billion from the surplus will be reserved for supporting information and technology development and $1 billion earmarked for youth development.
