Highlights of Hong Kong Budget 2010-2011
The financial budget for the year 2010-11 was announced by the Finance Secretary, Mr. John Tsang on 24th February 2010. In his budget, Mr. John Tsang forecast a deficit for the year 2010-2011 and announced several relief measures. What follows is a highlight of the major relief measures.
Economic Review 2009 in Figures
- Gross Domestic Product (GDP) fell by 2.7 in the year 2009. Foreceast for the year 2010-11 is set at 4-5 percent.
- The average inflation rate for 2009 as measured by the Composite Consumer Price Index was 0.5 per cent. Inflation is expected at an average of 1.5 percent this year.
- Consolidated Account in 2010-11 forecast to incur a HKD25.2 billion deficit.
Relief Measures
- Paying two months' rent for around 700 000 public housing tenants. The Government will pay the base rent for tenants who are required to pay extra rent to the Hong Kong Housing Authority. For non-elderly tenants of the Hong Kong Housing Society's Group B estates, the Government will pay two-thirds of their rent.
- Providing an extra allowance to CSSA recipients, equal to one month of the standard rate CSSA payments; and an extra allowance to Old Age Allowance and Disability Allowance recipients, equal to one month of the allowances.
- Reducing 75 per cent of salaries tax and tax under personal assessment for 2009-10, subject to a ceiling of $6,000. The reduction will be reflected in the taxpayer's final tax payable for 2009-10.
- Waiving rates for 2010-11, subject to a ceiling of $1,500 per quarter for each rateable property. It is estimated that about 90 per cent of domestic properties and 60 per cent of non-domestic properties will be subject to no rates in the year.
- Raise stamp duty on transactions of properties worth over HKD20M from 3.75% to 4.25%. Buyers will not be allowed to defer stamp duty payment.
- Extend profits tax deductions to cover the purchase of registered trademarks, copyrights and registered designs.
- Waive the business registration fee for one year.
- Profit Tax rate remain unchanged.
- The duty-free concessions on tobacco products will be abolished.
Click here to download the full text of the 2010-11 Budget.
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