The violent shock caused by the storm of revisions has continued for nearly half a year, coupled with external uncertain economic factors such as the Sino-US trade war, and Hong Kong’s economic prospects are also difficult to be optimistic
There are a total of 9 measures to support enterprises and employment, including water, electricity and rates, and tax payment by installments. Some members of the catering industry believe that the measures can help them solve their immediate needs. (Related newsletter P12)
The fourth round of relief measures announced by the government yesterday is mainly targeted at small and medium enterprises (see table). Non-residential users’ water and sewage charges will be reduced by 75% for a period of 4 months. The two ceilings are 2 As a result, government revenue will be reduced by approximately RMB 340 million and RMB 125,000. The measures are expected to benefit 250,000 non-residential users.
Non-residential users will also receive a government subsidy of 75% for 4 months, with a monthly ceiling of 5,000 yuan per household, but the subsidy is subject to the approval of the Legislative Council. Chen Maobo pointed out that the electricity fee subsidy scheme can benefit 430,000 households and involve about 2.3 billion yuan. The Government has also decided to provide greater rates relief to non-residential properties in Hong Kong. The owners of 260,000 non-residential units will be granted rates relief in the last quarter of this year, which will be increased from the original $ 1,500 to $ 5,000.
More than 1,000 restaurants closed after storming
Hu Zhu, president of the Modern Management (Diet) Professional Association, said that the continuous violent shock has reduced the industry’s income by as much as 60%, and it is estimated that more than a thousand restaurants may close after the new year.
However, Hu Zhu also pointed out that the measures did not help the industry much. “Many owners are unwilling to reduce rents. In addition, factors such as African swine fever have caused the cost of ingredients to rise sharply, and restaurants are facing great operating pressure.” SME guarantees make it easier for them to borrow money from banks to overcome difficulties, and emphasized that the government must successfully “stop violence and suppress chaos” at an early date in order to really solve the problem.
Wu Hongbin, president of the Chinese Manufacturers’ Association of Hong Kong, said that the relief measures are more direct than the first three rounds and can play an emergency role. They can help SMEs to solve their difficulties and praise the government for actively introducing new measures in the face of fiscal deficits. “The urgent needs of enterprises”, I hope that the Legislative Council can review the relevant funding and regulations as soon as possible so that the measures can be implemented as soon as possible.
All 9 new measures involved a total of more than 4 billion yuan. In combination with the previous three rounds of measures, the government has spent more than 25 billion yuan. Chen Maobo pointed out that in the case of economic conditions reducing the treasury income, the introduction of multiple rounds of support measures will cause the government to run a deficit , And foretells that the deficit may continue in the next financial year, but emphasizes that the government is able to afford the relevant measures.
May apply for tax payment by installments
Yesterday’s latest relief measures also involved tax arrangements. Citizens can apply for tax payment in installments on profits tax, salaries tax or personal income tax for the year of assessment 2018/19. If the application is approved by the Inland Revenue Department , The surcharge for unpaid taxes will be waived for a period of not more than one year.
The voice of the middle class chairman Li Zirong said that the economic environment has deteriorated in recent months, and many industries have deteriorated, and even a tide of closure. Tax payment by installments can only help some “moonlight clan”. It is considered that tax reduction is the most direct method. Suggestions could increase the allowance.
Direct benefits to citizens
In the year of assessment 2018/19, taxpayers of profits tax, salaries tax and personal income can apply for instalment tax. If the application is approved by the tax bureau, the surcharge of unpaid tax will be waived for a period of not more than one year .
The Employees Retraining Board’s “Special Value Added” scheme increased the maximum monthly allowance per trainee from $ 4,000 to $ 5,800, involving 350 million yuan
The “Wing Spread Youth Program” was optimized to assist young people to enter the job market. It is expected that 600 people will benefit from the project, involving an annual payment of 14.3 million yuan.
Support employment measures for enterprises
75% reduction of monthly water and sewage charges for non-residential users for a period of 4 months. Water and sewage charges are capped at 20,000 yuan and 125,000 yuan per month, respectively. It is expected that about 250,000 households will benefit, involving 340 million yuan.
Provide 75% electricity subsidy to eligible non-residential users for a period of 4 months, with a maximum of 5,000 yuan per month. It is expected that 430,000 households will benefit, involving 2.3 billion yuan.
The rate of non-residential property will be further waived in the last quarter of this year, with a ceiling of RMB 5,000, which is expected to benefit 260,000 households, involving RMB 600 million.
Kai Tak Cruise Terminal reduced rents from December 1 this year to the end of May next year. It is expected that 105 ships and 6 merchants will benefit.
The Recycling Fund launched a one-time rental subsidy for recycling companies. It is expected that 500 street corner recycling shops and 400 open-air recycling sites will benefit, involving about 100 million yuan.
The Securities and Futures Commission has waived the 2020/21 annual license fee for all licensees and intermediaries for a period of one year, benefiting more than 47,000 licensees or institutions, involving more than 117 million yuan.