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Hong Kong Budget 2018-2019
Hong KongPolitics

Finance chief Paul Chan dishes out budget sweeteners worth billions to Hong Kong taxpayers

Despite widespread calls for some of the bumper HK$138 billion surplus to be ploughed back to the public in cash handouts, only needy students will get a grant

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Paul Chan delivers his budget. Photo: Sam Tsang
Ernest KaoandNaomi Ng

Rebates, allowances, rate waivers and free cash for pupils – Hong Kong taxpayers will benefit from more than HK$50 billion in sweeteners and tax concessions this year as the city’s bulging fiscal surplus balloons to a record HK$138 billion (US$17.6 billion).

But despite widespread calls for some of the riches to be ploughed back to the public in cash, Financial Secretary Paul Chan Mo-po put to rest all talk of handouts to residents – with the exception of needy students, who will get a one-off HK$2,000 grant to support their learning.

Six key takeaways from Hong Kong finance chief’s budget speech

The details were unveiled by Chan in his one hour, 50 minute budget speech on Wednesday, in which he pledged to reduce tax burdens on individuals. He announced that bands for salaries tax would be widened from the current HK$45,000 to HK$50,000, and the number of bands raised from four to five.

The marginal rates for these bands will be adjusted to 2 per cent, 6 per cent, 10 per cent, 14 per cent and 17 per cent respectively.

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“These measures will reduce the tax burden of 1.34 million taxpayers and reduce tax revenue by HK$4.09 billion a year,” Chan said.

Married couples will also have the option to decide whether to elect for personal tax assessment, Chan added.

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