KPMG Calls For Another Round Of Consumption Vouchers

Accountancy giant KPMG has called on financial secretary Paul Chan to issue another round of spending vouchers in his budget next week.

KPMG China said adult permanent residents and new arrivals should get HK$5,000 worth of consumption vouchers.

Speaking at a press conference, the firm’s tax partner, Stanley Ho, said part of the amount should be restricted to sectors like catering and tourism – which had been hard-hit by the pandemic and might take up to two years to fully recover.

"It is critical for local consumption to help the economic recovery as well as boost the confidence of various merchants to make the investment," Ho said.

"For example, merchants may hire more people as well as open more stores if they see an increase in demand."

Ho said the vouchers are expected to contribute 0.7% to GDP growth, and will cost the government around HK$33 billion.

Meanwhile, the firm also suggested a number of measures to attract talent and support businesses.

They include tax cuts, as well as shortening the amount of time required for foreigners to obtain a Hong Kong permanent residency – from the current requirement of seven years of ordinary residence to just three.