The Financial Secretary Mr. Paul Chan Mo-po delivered the 2021/22 Budget speech on 24 February 2021. The budget proposals, as detailed below, will need approval by the Legislative Council before taking effect.
Measures supporting enterprises and individuals
- Reduce profits tax for 2020-21 assessment year by 100%, subject to a HK$10,000 ceiling.
- Reduce salaries tax and tax under personal assessment for 2020-21 assessment year by 100%, subject to ceiling of HK$10,000.
- Waive business registration fees for 2021-22.
- Waive rates for non-domestic properties for 2021-22, subject to a ceiling of HK$5,000 per quarter in first two quarters and HK$2,000 per quarter in remaining two quarters.
- Waive rates for domestic properties for 2021-22, subject to a HK$1,500 ceiling in first two quarters and HK$1,000 per quarter in remaining two quarters
- Water and sewage charges of non-domestic households: waive 75% of charges for 8 months, subject to a monthly cap of HK$20,000 and HK$12,500 respectively
- Extend the application period of 100% guarantee low-interest loan for enterprises to the end of this year, raise loan ceiling to $6 million, extend repayment period and duration of principal moratorium.
- Rental for Government properties/ properties covered by short-term and temporary waivers: 75% reduction for 6 months (100% concession for those closed at the Government’s request).
- Set up a special 100% loan guarantee for the unemployed:
- loan ceiling at $80,000, application period of 6 months
- interest rate fixed at 1% per annum, maximum repayment period of 5 years
- principal moratorium for the first 12 months, offer reimbursement for interest paid after loans are repaid in full as scheduled
- Inject HK$9.5 billion into the Innovation and Technology Fund by two yearly instalments.
Raise the rate of Stamp Duty on Stock Transfers, from the current 0.1% to 0.13% of the consideration or value of each transaction payable by buyers and sellers respectively.
- Increase the rate of each tax band for the first registration tax for private cars (including electric private cars) by 15% and the vehicle licence fee by 30%.
- Subsidy of HK$1,000 to each residential electricity account.
- Issue HK$5,000 electronic consumption vouchers in instalments to each eligible Hong Kong permanent resident and new arrival aged 18 or above.
- Pay examination fees for candidates sitting 2022 HKDSE Examination.
- Extra half-month allowance of standard CSSA payment, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to Working Family Allowance and Individual-based Work Incentive Transport Subsidy.
- Issue no less than HK$24 billion of Silver Bond and no less than HK$15 billion of iBond this year. Lower the eligible age for Silver Bond subscription from 65 to 60.