Middle-class families to get ‘massive’ tax breaks in Hong Kong budget

Source tells Post that finance chief will unveil incentives and relief measures to lessen burden on those struggling with housing and family expenses

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Financial chief Paul Chan Mo-po. Photo: Nora Tam

Published: 9:01am, 24 Feb 2018Updated: 9:27am, 24 Feb 2018

Hongkongers will get no cash handouts in this year’s budget, despite mounting pressure from across the political spectrum on Financial Secretary Paul Chan Mo-po, who will instead offer “massive” tax incentives and relief measures targeting specific groups, especially the middle class.

Details will be unveiled on Wednesday when Chan announces his plan to spend a huge fiscal surplus that might surge well beyond HK$140 billion (US$17 billion), far above his official estimate a year ago.

Expectations are high, as the first budget to be rolled out under the new administration is seen as a testimonial of the new fiscal philosophy of Chan and Chief Executive Carrie Lam Cheng Yuet-ngor.

“The whole thinking behind the budget is about sharing, how people can get a fair share from the big surplus,” a source familiar with the fiscal situation told the Post.

Instead of lowering the standard salaries tax rate, which would benefit higher-income groups, it is understood Chan will announce substantial tax rebates to lessen the burden of middle-class families struggling to cope with housing and family expenses.

More than 65,000 households applied for a one-off living subsidy for low-income families in 2016. Photo: Martin Chan

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