More jobs, support measures mooted

2021-02-27 14:16:17

(To watch the 2021-22 Budget speech with sign language interpretation, click here.)

The Government proposed to allocate $6.6 billion for creating around 30,000 time-limited jobs and implement measures costing about $9.5 billion to support enterprises.

Presenting the 2021-22 Budget at the Legislative Council today, Financial Secretary Paul Chan said it is the Government?s top priority to contain the epidemic so that businesses and the public can be back to their daily routines.

Apart from sparing no effort in the epidemic fight, the Government created in 2020-21 about 31,000 time-limited jobs in the public and private sectors through the Anti-epidemic Fund, with some 16,000 appointments made as at end-January.

To safeguard employment, Mr Chan said the Government will create another 30,000 time-limited jobs for up to 12 months.

Moreover, the Employees Retraining Board will launch in July the fourth tranche of an existing training scheme, benefiting 20,000 people. The scope of the Continuing Education Fund will also be expanded to cover online courses.

Cutting tax, fees

On supporting enterprises, Mr Chan proposed a 100% profits tax cut for the 2020-21 assessment year, subject to a ceiling of $10,000. The move will benefit 128,000 businesses.

About 420,000 non-domestic properties will enjoy a rates concession in the coming financial year, subject to a $5,000 cap per quarter in the first two quarters and a $2,000 cap per quarter in the remaining two quarters for each rateable property. 

Mr Chan also suggested waiving the business registration fees for 2021-22, involving 1.5 million business operators. In addition, about 250,000 non-domestic households will continue to enjoy a 75% waiver of water and sewage charges for eight months from April this year, subject to a monthly ceiling of $20,000 and $12,500 respectively.

For eligible tenants of government properties as well as eligible short-term tenancies and waivers under the Lands Department, the Government will continue to grant the 75% rental or fee concession for six months from April. Tenants who have to close their properties at the Government?s request will receive a full rental waiver.

Helping SMEs 

Noting the epidemic has been lingering on for over a year, Mr Chan said there are measures to ease the cash flow pressure of small and medium enterprises.

These include extending the Special 100% Guarantee Product?s application period to the end of this year, increasing the maximum loan amount per enterprise from the total amount of employee wages and rents for 12 months to that for 18 months, and raising the loan ceiling to $6 million.

Moreover, the maximum repayment period will be extended to eight years while the maximum duration of principal moratorium to 18 months, he added.

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