Hong Kong will offer tax breaks, handouts and subsidies to small businesses and residents, to mitigate the impact of the most stringent social restrictions imposed in the city to curb the spread of COVID-19, Finance Secretary Paul Chan said.
The 2022/23 budget proposals were announced as hundreds of bars, restaurants and small retailers warned they were months away from closure, and shopping malls were deserted while the city endured its worst COVID-19 outbreak so far.
Fiscal reserves are estimated at HK$940 billion at the end of the government's current term in June, and are expected to grow above HK$1 trillion in the coming five years. Given the city is facing thousands of infections a day and the numbers are growing, some analysts predict at least one or two quarters of economic contraction after recovering last year from the city's most prolonged recession in 2019-2020.
A 100% reduction in profits tax capped at HK$10,000 is expected to benefit 151,000 firms, Chan said. In addition, the government will help small firms with loan guarantees, export financing, and debt repayment holidays.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hong Kong Sets All Schools for Covid-19 Response CentersThe move shifts the holidays forward several months as part of a raft of measures to combat an Omicron surge in the face of pressure from Chinese leaders in Beijing to contain the disease.
Read more »
Hong Kong orders mandatory COVID-19 tests for all residentsHong Kong's leader says the city will test its entire population for COVID-19 in March as it grapples with its worst outbreak driven by the omicron variant.
Read more »
Hong Kong: What went wrong with its Covid plan?The city saw early success with its zero Covid policy, but Omicron has brought it to its knees.
Read more »
Hong Kong maps terms of COVID vaccine pass amid record high casesHong Kong will expand its vaccine bubble to include shopping malls and supermarkets, authorities confirmed on Monday, but added there would be exemptions and random inspections in some places, as they battle a new record surge in COVID-19 cases.
Read more »
COVID cases drop again and travel restrictions are lifted, but places like Hong Kong worsenThe World Health Organization is largely making moves in returning multiple countries back to 'normal'. Some places, however, have cases on the rise and are testing residents en masse. Here's that and more COVID news.
Read more »