For Immediate Release
The just-released 2012-13 Budget announced a number of measures to help companies cope with the global economic downturn, including enhancement of the existing SME Financing Guarantee Scheme and a profits tax rebate. The Hong Kong General Chamber of Commerce believes these measures will help ease companies’ cash flow constraints and improve the SAR’s competitiveness. Chamber Chairman Anthony Wu welcomed the moves and expressed his satisfaction that so many of the Chamber’s proposals were adopted.
In light of the Eurozone debt crisis and global economic downturn, Wu said that Hong Kong needs to be prepared for severe economic challenges ahead. With its strong emphasis on supporting businesses, this Budget adopted many of the Chamber’s proposals which will help ease enterprises’ operational difficulties. For instance, measures such as the enhanced SME Financing Guarantee Scheme, profits tax rebate, waiving business registration fees and halving charges for import and export declarations will all directly help businesses.
Chamber’s Legco Representative Jeffrey Lam said increasing the loan guarantee ratio and reducing the annual guarantee fee for loans under the SME Financing Guarantee Scheme will help SMEs’ struggling to get financing. It will also improve banks’ confidence to lend to businesses. The measures will provide adequate liquidity to help SMEs sustain their operations as orders decline.
Chamber CEO Shirley Yuen supported the provision that allows students to repay their student loans one year after completing their studies. She believes this will alleviate fresh graduates’ financial burden and allow them more time to concentrate on building their careers.
HKGCC also welcomes redevelopment projects to revitalize industrial buildings under the URA in the form of a pilot scheme. We hope this will help give a new lease of life to industrial buildings and release more sites for commercial or residential development.
However, the Chamber believes there are insufficient environmental improvement measures, and worries the across-the-board electricity subsidy is not conducive to energy conservation.
Given the economic uncertainty, the Chamber will continue to urge the government to lowering the corporate tax rate to 15%. Financial Secretary, John Tsang, expects real economic growth will be 1-3% in 2012, which is in line with the Chamber’s prediction for the coming financial year.
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For media enquiries, please contact: Ms Fion Chui at 2823-1299 / [email protected]