Bigger tax breaks for wage earners

Some 1.95 million workers will have their salaries tax and tax under personal assessment for the 2019-20 year reduced by 100 percent, capped at HK$20,000.

This will cost the government HK$18.8 billion and will be reflected in the final tax payable for this fiscal year.

Rates will be waived for four quarters next fiscal year, subject to a ceiling of HK$1,500 per quarter for each property. This will affect 2.93 million properties and will reduce revenue by HK$13.3 billion.

Welfare recipients will receive an extra month's allowance, which will cost the government HK$4.2 billion. This will benefit hundreds of thousands of people under the Comprehensive Social Security Assistance Scheme, Old Age Allowance and Old Age Living Allowance or Disability Allowance, as well those receiving the Work Incentive Transport Subsidy.

The government will spend HK$1.83 billion to pay one month's rent for lower income public housing tenants of the Housing Authority and the Housing Society.

Students sitting the Diploma of Secondary Education exams next year will not have to pay examination fees, with the government shouldering HK$150 million in fees.

Paul Chan also allotted HK$30 million "to enhance the employment programs of the Labour Department, with a view to further encourage employers to hire the elderly, young people and persons with disabilities."

The ceiling of on-the-job training allowances payable to employers will be increased, with the enhanced measures expected to take effect in the second half of the year and benefit about 4,000 people a year. He also said the Employees Retraining Board will provide training and allowance for employees affected by the economic downturn. The maximum monthly allowance for each of the 40,000 trainees a year will be raised from HK$4,000 to HK$5,800, costing the government about HK$2.5 billion.

The Construction Industry Council will draw HK$200 million from its levy income to subsidize 6,000 eligible small and medium-sized contractors and registered subcontractors up to HK$20,000 each.

Under the anti-epidemic fund announced earlier, a one-off special allowance will be given to about 200,000 eligible low-income households.

sophie.hui@singtaonewscorp.com