Hong Kong’s finance chief Paul Chan Mo-po announced in his 2023 budget on 22nd February 2023. He believes Hong Kong will remain positive and have visibly recover in 2023. Even though the economic recovery is in the initial stage. Thus, the budget will focus on measure to support people and enterprises and boost the momentum of Hong Kong’s economic revival.

2023 Budget Highlights:

The budget introduces a series of Speedy Post-Epidemic Recovery Measure. Centre O will highlights the budget as below:

Attracting Tourists and Enlivening The City’s Image

  • Spend over $250 millionon mega events
  • About $300 million reserved for staging more mega events, international meetings, incentive travels, conventions and exhibitions in Hong Kong
  • Offer shopping and dining privileges to 1 million inbound visitors
  • $50 million for stepping up the promotion and branding of Hong Kong

Happy Hong Kong

  • Launch the “Happy Hong Kong” Campaign for the general public focusing on gourmet experiences, fun amusements and exciting ambience
  • Launch a “Gourmet Marketplace” comprising large-scale food fairs in various districts in Hong Kong
  • Organise a large scale sea-land carnival in summer with Victoria Harbour as the stage
  • West Kowloon Cultural District Authority, Disneyland, Ocean Park, Cyberport, Science Park, Jockey Club, etc. will each hold themed activities

Electronic Consumption Vouchers

  • Issue $5,000 electronic consumption vouchers to each eligible Hong Kong permanent resident and new arrival aged 18 or above in two instalments
  • Previously registered eligible persons: $3,000 consumption vouchers will payout in April, remaining $2,000 vouchers will payout in mid-year
  • New eligible persons: vouchers will payout in mid-year in two instalments upon registration
  • Eligible persons who have come to live in Hong Kong through different admission schemes or to study in Hong Kong: offer $2,500 vouchers

Supporting Enterprises

  • Reduce profits tax for the assessment year 2022/23 by 100%, subject to a $6,000 ceiling
  • Provide rates concession for non-domestic properties for the first two quarters of 2023/24, subject to a ceiling of $1,000 per quarter
  • Grant 50% rental fee concession to eligible tenants of government premises and short-term tenancies and waivers for 6 months
  • Extend the application period of all guarantee products under the SME Financing Guarantee Scheme to March 2024
  • Offer fully guaranteed loans for eligible passenger transport operators and licensed travel agents. To be launched in April this year
  • Extend the Travel Agents Incentive Scheme to June 2023
  • Inject $30 million into the Information Technology Development Matching Fund Scheme for Travel Agents to encourage the tourism sector to undergo upgrade and transformation

Supporting the General Public

  • Reduce salaries tax and tax under personal assessment for the 2022/23 assessment year by 100%, subject to a $6,000 ceiling
  • Provide rates concession for domestic properties for the first two quarters of 2023/24, subject to a $1,000 ceiling per quarter
  • Provide an extra half-month allowance of standard CSSA payments, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to Working Family Allowance
  • Extend the temporary special measures of the Public Transport Fare Subsidy Scheme for six months (to October 2023)
  • Pay examination fees for school candidates sitting for the 2024 HKDSE Examination
  • Grant each eligible residential electricity account a subsidy of $1,000
  • Extend the current arrangement of distributing electricity charges relief of $50 a month to each account to end 2025
  • From the 2023/24 assessment year, increase the basic child allowance and the additional child allowance for each child born during the year of assessment from $120,000 to $130,000

For further information, please contact us.

You may want to read: 2022-2023 HONG KONG BUDGET HIGHLIGHTS