The Hong Kong General Chamber of Commerce (HKGCC) welcomes the measures announced by the Financial Secretary Paul MP Chan in his Budget Speech today, which focus on reviving the economy and businesses, as well as promoting a vibrant and sustainable Hong Kong, amidst the ongoing economic and geopolitical instability.
Despite the Budget deficit constraints, the Chamber lauds the Financial Secretary for efforts to bolster domestic and international confidence in Hong Kong by promoting and marketing our unique advantages to businesses, talent and tourists around the world.
The complete removal of all existing property cooling measures – Special Stamp Duty (SSD) Buyer’s Stamp Duty (BSD) and a New Residential Stamp Duty (NRSD) for second-time purchasers – with immediate effect, should help to stimulate both locals and overseas talent to purchase their own home, which will boost the property and related industries.
Enhancing Hong Kong’s image globally through expanding the scope of mega events and tourism attractions and packages will spread more good stories about Hong Kong overseas. Proposals to expand ETO offices and secure free trade and double taxation agreements with more countries around the world will be important tools to facilitate trade and help businesses develop new markets.
As SMEs are the backbone of Hong Kong, the two-year extension and additional HK$10 billion injected into the SME Financing Guarantee Scheme will be welcomed by businesses. The one-off rebate on profits tax, salaries tax and tax under personal assessment by 100% – although less than last year – is still to be appreciated given Budget constraints.
Raising the cumulative funding ceiling of the BUD Fund and providing subsidies for SMEs in the food & beverage and retail sectors to implement digital solutions should ease manpower shortages while increasing efficiency. Similarly, the establishment of a “digital identity of enterprises” to verify enterprises’ authorized signatures online will further boost SMEs’ competitiveness and reduce costs.
The extension of the Green and Sustainable Finance Grant Scheme is also to be welcomed, as are the green technology, green shipping and aviation initiatives. The pledge of $100 million to promote the development of green and sustainable finance in Hong Kong is also a big win for Hong Kong.
With the Budget deficit forecast to be HK$101.6 billion for 2023/24, the Chamber believes the Financial Secretary has managed to use public finances wisely to carefully map out a workable plan that will reap long-term benefits for Hong Kong going forward. We believe these initiatives will help advance Hong Kong’s competitiveness and prime us to be ideally positioned for a sustainable recovery.