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Hong Kong Budget Summary 2011 - 2012

Hong Kong Budget Summary 2011 - 2012

Update: On 2 March 2011, the Financial Secretary announced additional measures in response to strong criticism from legislators and the public that the Budget failed to help the needy and the middle-class. Instead of the HKD 6,000 one-time injection into MPF accounts, Hong Kong permanent residents aged 18 or over will receive a HKD 6,000 handout. The HKD 6,000 handout will be allocated to Hong Kong permanent residents through a new platform (yet to be announced) structured to encourage them to save. The Financial Secretary also announced a Salaries Tax reduction of up to 75 percent for the coming year, capped at HKD 6,000.

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Hong Kong Budget Summary 2011 - 2012

On 23 February 2011, the Financial Secretary, John Tsang Chun-wah, delivered his 2011-2012 Budget Speech to the Legislative Council. KPMG China's Budget Summary comments on the implications of the proposed measures announced by the Financial Secretary. 

 

Focus areas:

  • Developing the economy
  • Caring for people's livelihood
  • Preparing for the future

 

Relief Measures

  • Subsidy of HKD 1,800 to each residential electricity account
  • Waiver of rates for 2011-12 capped at HKD 1,500 per rateable property per quarter
  • Payment of two months' rent for public housing tenants

Mandatory Provident Fund

One-off injection of HKD 6,000 into the MPF accounts of all MPF scheme members and members of occupational retirement schemes (Note: See update above)

Salaries Tax

Increase of 20 percent in:

  • Allowances for
    • dependent parents/grandparents
    • additional dependent parents/grandparents
    • child
  • Deduction for caring for the elderly

(Note: See update above)

Revenue Measures

  • First Registration Tax for private cars increased by about  15 percent
  • Excise duty on tobacco products increased by 41.5 percent

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