Hong Kong’s 2023-24 budget announced on February 23 aims to recover its economy from the slowdown caused by the Covid-19 pandemic. The financial hub is handing out cash and reducing taxes to boost the growth of its economy while the budget estimates a $139.8 billion consolidated deficit.
The Hong Kong government will issue vouchers worth Rs 52,823 ($637) to its adult citizens as reported by CNBC.
The primary focus of the budget is on attracting tourists to the city with the literal ‘Happy Hong Kong’ campaign. The focus of the campaign will be on providing a gourmet experience, amusements and a general ambience.
The officials plan to conduct large-scale food fairs in different districts and its activity centres will host a plethora of entertainment activities.
In a measure to boost Hong Kong’s economy, the government is reducing salary tax and profit tax by 100% with a cap of $6,000.
The port city neighbouring China is facing employee shortages. The country announced a new Capital Investment Entrant Scheme to attract talent into the country by easing regulations for setting up business.
Hong Kong’s Financial Secretary, Paul Chan has said “I believe that Hong Kong’s economy will visibly recover this year, and I remain positive”.
Hong Kong’s budget document forecasts the country’s GDP to grow by 3.5%-5.5% in 2023 against a -3.5% growth in 2022. The forecast for underlying inflation is expected to increase from 1.7% in 2022 to 2.5% in 2023.
The latest budget brings good news to aspiring home buyers as the govt. has announced an adjustment in stamp duty for first-time local home buyers up to the value of $ 10,000,000.
While the country is increasing its expenditure, the budget forecasts a deficit of $54.4 billion for 2023-2024.
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