John Tsang likely to trim size of budget handouts

Taxpayers and property owners will be granted another package of relief measures by Financial Secretary John Tsang Chun-wah today, as the government is expected to pocket a fiscal surplus of more than HK$60 billion in the current 2012-13 financial year.

But the size of the sweeteners to be doled out in this year's budget - including a waiver of property rates and a salaries tax rebate - will be smaller than last year's, as the government hopes to reserve more resources to help low-income people.

A government source said the waiver of property rates would be offered for all four quarters in the next financial year - 2013-14 - but the ceiling would be lower than HK$2,000 for each property for each quarter, compared with that of HK$2,500 per quarter granted in last year's budget.

The source said owners of most small and medium-sized flats would not be affected by the reduction.

The waiver of rates in last year's budget cost the government HK$11.7 billion.

The tax rebate granted in today's budget is likely to be cut back to about HK$10,000, compared with HK$12,000 offered in last year's budget.

"The loss of revenue for government coffers will be smaller, while not so many taxpayers will be affected if the tax rebate, and the ceiling of the rates waiver, is adjusted a bit downwards. By doing so, the government can earmark more to help low-income families," the source said.