ENG Tax relief measures and economic stimulus for Hong Kong

Tax relief measures and economic stimulus for Hong Kong

Hong Kong, 23 April 2020

ENG Tax relief measures and economic stimulus for Hong KongWith the Covid-19 pandemic, several economies in the world had to slow down. With mass unemployment and factories and most businesses closed, governments are expected to issue measures to relief the economy and help the population.

Hong Kong followed the steps granting several benefits on a concise and effective plan that will cost at approximately U$18 billion, which just shows the top tier efficiency of the country as taxation is very low. The plan is one of the most complete and well-organized plans in the word and it was welcomed by the business community and its citizens.

The plan includes a U$10 billion budget for job retention in the form of a subsidy of part of the payroll costs for 6 months, the creation of 30,000 jobs in the next 2 years and a U$100 million budget destined to let workers learn new skills and apply more technology.

Among the tax relief measures is the delay by one month of issuance of profits tax returns and salaries and deferral of 3 months for profits tax salaries payment and others. For the general population, the metro fare has been reduced.

Due to the overall travel ban, several airlines in the world registered over 90% losses and some even already closed down, in order to protect the local aviation industry, the government granted a U$300 million lifeline.

The measures should be applauded and we hope that other countries will continue to incorporate ideas for the speedy economy to recovery.

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