Hong Kong’s Budget for the Upcoming Year Will Hopefully Bring Comfort to Everyone
With worldwide inflation on the rise and unknown economic stability, Hong Kong alleviates the Hongkees burden with financial relief through budget 2019/2020. Among the hot topics worldwide, providing people with financial assistance and stronger business support remains active in Hong Kong recently presented Budget. It is imperative that the peoples’ spending power is kept in balance so that the economy in the country, can remain amicable.
Even as Hong Kong’s income tax is among the lowest in the world, Hongkees still find it difficult to survive in Hong Kong as its standard of living is also among the highest, especially more if one is to work and live in the city. When people struggle to make ends meet, disposable income and cash at hand become limited. Hence, purchasing power is reduced. Although the tax is among the top contributor of Hong Kong’s revenue, relieving tax for salaries, personal assessment and enterprises profit will contribute significantly to Hong Kong’s economic stability as people will yield better productivity as a result of better expenses. Through the Budget, the tax reduced is capped at a ceiling of HK$20,000. Such an amount can cover so much for an average family in Hong Kong.
More Allowances & Incentives
The Budget has also allocated cash incentives to recipients of comprehensive social security allowance, old age allowances, old age living allowances or disability allowance, working family allowances and work incentive transport subsidy. The allocation for the abovementioned allowances is one month extra of compensation. Such amount will provide additional comfort to the people in terms of overall necessary expenses. The government has heard concerns about rising healthcare expenses of Hong Kong; hence, the Budget has approved to provide a one-off additional HK$1,000 worth of elderly healthcare vouchers and increase the accumulation limit to HK$8,000. Students battling with rising costs will benefit from an HK$2,500 one-time grant and fees for each school candidate sitting for the 2020 DSE will be paid by the government.
Businesses registering in Hong Kong for the year 2019 and 2020 will require no registration fees as it is waived for the year 2019 and 2020. Enterprises in Hong Kong are encouraged to use technology and innovation to improve productivity; hence, the regularisation of the Technology Voucher Programme (TVP) is essential. Moreover, the Budget approves for the funding of TVP increased to HK$400,000. Enterprises will get to enjoy a certain amount of funds as the government agrees to inject HK$ 1 billion into the dedicated fund on Branding, Upgrading and Domestic sales while extending its geographical scope. The Hong Kong government recognizes businesses and enterprises needs to expand and explore new business opportunities without much hassle and bureaucracy. Through the Budget, companies will benefit from the extended application period under SME Financing Guarantee Scheme until end June 2020, a more extensive network of international trade and investment agreements and Comprehensive Avoidance of Double Taxation Agreement as well as stronger external promotion through the expansion of the Economic and Trade Office network.