Paul Chan says considerations for consumption vouchers different, land sales may resume next quarter

Authorities have different considerations on whether or not to distribute the consumption vouchers again compared to the past, Financial Secretary Paul Chan Mo-po said, as he encouraged citizens to actively take part in the government’s “Night Vibes” activities to be happier. 

Chan’s remarks came on Saturday as he attended a radio program and spoke to citizens for his upcoming 2024/25 Budget, to be delivered on February 28. 

Chan noted that the considerations for rolling out consumption vouchers are different this year due to the government’s current financial status, as well as the recovering economy. 

A citizen Choi said he couldn’t stay in Hong Kong to spend his money if there wouldn’t be any voucher this year. He also called on Chan to impose departure tax to keep Hongkongers from frequently traveling up north to the mainland. 

Chan responded that both policies have their own advantages and disadvantages. He noted that imposing departure tax may affect the relationship between Hongkongers and mainlanders, and arrival tax may concern the tourism sector. 

Chan also stressed that the International Monetary Fund and other financial organizations still have positive rating assessments on Hong Kong. The government will continue to strive for the economy and “grow the pie”, offering more jobs and supporting the public with more resources, he added. 

On the government suspending the sales of residential or commercial land sites this quarter, Chan reiterated that the suspension of sales in this quarter doesn’t necessarily mean that it will continue in the next quarter. 

He pointed out that since the handover in 1997, the revenues generated from sales of land can range from tens of billions of dollars to as much as hundred of billions dollars. 

The public needs not to be concerned because of short-term fluctuation and what’s important is that the government will continue to release land. 

Once the property market is booming again and the demand surges, the government can then resume the land sales to alleviate climbing home prices and let citizens know about the steady and consistent land supply. 

A citizen Poon suggested principal officials have their salaries decreased by 20 percent, citing falling figures of the government reserve due to US-China tensions. 

Chan noted that the government is expected to have about HK$720 billion in the reserve by the end of this March. 

The government will continue to cut expenditures while searching for new sources of income, and maintain the reserve at a healthy level, Chan said. 

+3