Financial Secretary John Tsang unveils a new round of relief measures, which will cost the government an additional US$2.15 billion.

Mr. Tsang described the measures as “simple and direct” and “targeted, timely and effective,” with some enhancing previously announced relief efforts.

“Economic indicators for the first quarter published recently show our economy is facing severe challenges,” he said. “As the Chief Executive said on May 14, additional relief measures would be introduced within a month.”

Economic relief

Among the new measures benefiting the general public: raising the one-off tax reduction for 2008-09 salaries tax and tax under personal assessment from 50% to 100% — with a ceiling of US$1,025.64.

The rates in the 2009-10 fiscal year will be exempted the whole year, with a ceiling of US$192.30 per quarter per household. It is estimated that 90% of residential and 60% of non-residential properties will benefit.

The government will pay the basic rent for 700,000 public housing tenants for two months, while recipients of social welfare and disability allowances will receive an additional one-month payment. Students from families receiving social welfare assistance will get a US$128.20 subsidy in the new school year.

Financial backing for small- and medium-sized enterprises will be strengthened to allow them to borrow more money from banks. Business registration fees and entertainment and restaurant license fees will be waived for a year.

Mr. Tsang said more temporary jobs will be created through various anti-pandemic H1N1 campaigns and through the enhanced Operation Building Bright project.

Early implementation

The Financial Secretary has asked bureau directors to explain the measures to Legislative Council (LegCo) panels as soon as possible and to expeditiously follow up on proposals requiring legislative amendments or funding approval.

“We hope to secure the necessary authority to implement this package of measures before the LegCo recess this summer,” he said.

The Executive Council agreed the additional measures are timely and sensible and will help businesses preserve and promote employment.

Non-official Members Convenor Leung Chun-ying said the revenue concessions will help tide people over the economic difficulties brought about by the global recession.