153. We have just gone through the worst time of the financial tsunami, but its impact on many people is not yet over. Some people have yet to enjoy a salary rise in line with the recovery, whose burden may be further increased by the emerging inflationary pressure, particularly rises in food prices. During the Budget consultation period, many people suggested that we should introduce short-term measures to alleviate people's burdens. In addition, some were of the view that in the early recovery stage more consumer spending would contribute to consolidating the recovery. After taking into account our financial position, I propose a series of one-off measures as follows: |
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(1) |
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. This measure will involve expenditure of approximately $1.8 billion; |
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(2) |
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. This proposal will involve an additional expenditure of about $1.8 billion; |
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(3) |
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. This proposal will cost the Government about $4.5 billion and benefit all 1.4 million taxpayers; |
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(4) |
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. This proposal will cost the Government approximately $8.6 billion; |
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(5) |
Waiving the business registration fees for one year. This proposal will cost the Government about $1.8 billion; and |
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(6) |
Providing an allowance of $1,000 in the next school year to students in kindergartens, primary and secondary schools and tertiary institutions receiving CSSA or student financial assistance, so as to ease the financial burden on their parents of paying the expenses for the new school year. This proposal will involve an additional expenditure of about $570 million. |
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154. To counter the financial tsunami, since 2008 we have introduced fiscal stimulus, job creation and relief measures amounting to $87.6 billion. This will rise to nearly $110 billion with this year's measures. Such measures, introduced on top of the current expenditure on health, housing, education and social welfare, are effective in stimulating the economy and safeguarding social stability and people's livelihood during the exceptional times of the financial tsunami. However, I must stress that these exceptional means employed at exceptional times cannot continue for long. Otherwise, they will affect the health of our public finances and dampen the enthusiasm for economic progress. I hope that these temporary measures will help our citizens tide over their present difficulties, assist our economy to regain its footing, and safeguard people's livelihood. |
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