Hong Kong proposes 11 one-off relief measures

Intended to aid the struggling middle class, thse will cost HK$33 billion.

It will also help ease the pressures being borne by SMEs and the grassroots, said Hong Kong's Financial Secretary John Tsang.

Among the proposed measures are waiving rates for fiscal year 2013-14, subject to a ceiling of HK$1,500 per quarter, for each piece of ratable property in Hong Kong. The proposal will cost the city government HK$11.6 billion.

Another proposal will reduce the salaries tax and the tax for 2012-13 by 75%, subject to a ceiling of HK$10,000. The reduction will benefit 1.53 million taxpayers in Hong Kong, and will cost the city government HK$8.4 billion.

The government also proposes granting each residential electricity account a subsidy of HK$1,800 that will cost the city HK$4.5 billion.

Other measures included providing an extra allowance for specific poor residents; increasing basic and additional child allowances from the current HK$63,000 to HK$70,000 for each child; waiving business registration fees for 2013-14 and reducing profits tax for 2012-13.

The government said the one-off measures can help ease the residents’ burden, and will also help maintain spending power and support employment.

Similar measures implemented last year had a stimulus effect on GDP that helped maintain Hong Kong's economic growth and low unemployment rate.