FS Gives HK$9.5b In Relief Measures For Businesses

The Financial Secretary, Paul Chan, says the government will set aside HK$9.5 billion to help businesses ride out the impact of the Covid-19 pandemic.

He said profit tax for 2020/21 will be reduced by 100 percent, but subject to a ceiling of HK$10,000.

This will benefit around 128,000 businesses but will cut government revenue by HK$1.05 billion.

Other measures include rates concession for non-domestic properties for the coming fiscal year; a waiver of business registration fees; a discount on water and sewage charges, and an extension of rental concessions for some tenants of government properties.

Chan also announced the extension of a one year 'Special 100 percent Guarantee Product 'which provides enterprises with low interest loans and subsidies.

He said the application period will be extended to the end of this year, and each company can receive up to 18 months' worth of staff wages and rent, up from 12 months at present.

Each business can receive up to HK$6 million, up from HK$5 million, and the maximum repayment period will be extended from five years to eight years, he said.