Govt Considers Tax Breaks For Flat Tenants

Financial Secretary Paul Chan said on Thursday that the government is studying the possibility of offering tax breaks for those who live in rented flats.

In a joint radio programme, many callers complained that the rate waivers offered by the financial chief in the budget he delivered on Wednesday only benefit flat owners and developers.

They criticised the budget for failing to address the needs of low-income tenants who are burdened by the rising rents.

Chan said government did look into the matter of offering tax allowances on rents.

He said it involved a lot of operational details and can’t be done this year as the computer systems at the Inland Revenue Department need to be adjusted. But he said officials are following up on the matter.

He refused to disclose the amount of tax allowances the government had been considering.

The Financial Secretary has announced a series of tax breaks that will cut bills for hundreds of thousands of people, as he set out in his budget how HK$52.4 billion of the government's record HK$138 billion surplus will be ploughed back into the community.