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Financial Secretary Paul Chan today announced measures to relieve people’s financial burden.
Further to the proposal in the 2019-20 Budget to reduce salaries tax, tax under personal assessment and profits tax for 2018-19 by 75%, Mr Chan said the reduction will go up to 100% while retaining the cap of $20,000.
About 1.43 million taxpayers will enjoy the tax cut, he said.
Another measure will see a $2,500 per head subsidy provided to kindergarten, primary and secondary day school students in the 2019-20 school year to ease parents’ financial burden. This will benefit over 900,000 students.
Mr Chan said more than 2.7 million households will get a one-off electricity charge subsidy of $2,000 and that the Government will pay one month’s rent for lower-income tenants living in the Housing Authority and Housing Society’s public rental units.
Recipients of Comprehensive Social Security Assistance, Old Age Allowance, Old Age Living Allowance or Disability Allowance will also receive one-month’s extra allowance.
The Financial Secretary stated the measures, which will cost $19.1 billion, together with one-off relief measures announced in the 2019-20 Budget will provide impetus for the economy and help cushion the enterprises and people of Hong Kong against challenges arising from economic uncertainties.
Relevant bureaus and departments will follow up on the implementation of the measures at full speed so that the public can benefit from them earlier, he added.