Hong Kong Financial Secretary Paul Chan delivered his 2021-22 Budget on 24 February. While reduced from last year, the government\u2019s budget (the \u201cBudget\u201d) will continue to provide much needed assistance those affected by the ongoing COVID-19 pandemic.<\/p>\n
More than 120 billion Hong Kong dollars will be spent in the coming financial year on measures to lift its economy. The city\u2019s economy is expected to grow between 3.5 to 5.5 per cent this year, and an average of 3.3 per cent each year during 2022 to 2025, Financial Secretary announced.<\/p>\n
Among the numerous specific measures that were announced, our Hong Kong team selected five top highlights:<\/p>\n
1.\u00a0 Tax relief for businesses<\/strong><\/p>\n The Budget reduced profits tax for 2020-21 by 100%, subject to a ceiling of HKD10,000 (reduced from HKD20,000 in 2019-20), to ease the burden of profits tax payers.<\/p>\n 2.\u00a0 <\/strong>Waiver of business registration fees\u00a0for 2021-22<\/strong><\/p>\n This waiver of business registration fees for 2021\u201122 will benefit 1.5 million business operators and reduce government revenue by HK$3 billion.<\/p>\n 3.\u00a0 New stamp duty rate on stock transfers<\/strong><\/p>\n Whilst no new taxes were introduced in this year\u2019s Budget, the government proposed to raise the rate of stamp duty on stock transfers from the current 0.1 percent to 0.13 percent of the consideration or value of each transaction, payable by buyers and sellers. Given the city\u2019s robust capital markets and anticipated increased IPO activity in the coming months, this is expected to raise additional revenue of HK$12 billion, Financial Secretary said.<\/p>\n 4.\u00a0 <\/strong>Consumption e-vouchers to boost the economy<\/strong><\/p>\n The government will hand out electronic consumption vouchers. Every permanent resident and new arrival aged 18 or above will receive HK$5,000 in instalments. This will benefit 7.2 million people and cost HK$36 billion.<\/p>\n 5.\u00a0 <\/strong>Guangdong-Hong Kong-Macao Greater Bay Area (GBA)<\/strong><\/p>\n Through the GBA Youth Employment Scheme, university graduates can undertake work and receive on-the-job training in the I&T field. Various schemes, including the Greater Bay Area Youth Employment Scheme, have been introduced to help Hong Kong businesses and youths grasp the opportunities arising from GBA development.<\/p>\n