Help at hand: Financial Secretary John Tsang unveils a new round of relief measures which will cost the Government $16.8 billion.

Financial Secretary John Tsang has unveiled a new round of relief measures which will cost the Government $16.8 billion, bringing the total stimulus package since last year's Budget to $87.6 billion, or 5.2% of GDP.

Announcing the measures this afternoon, he described them as "simple and direct" and "targeted, timely and effective", with some an enhancement of the relief measures announced in his 2009-10 Budget.

"Economic indicators for the first quarter published recently show our economy is facing severe challenges. As the Chief Executive said on May 14, additional relief measures would be introduced within a month," he said.

Economic relief

Highlights of the measures benefiting the general public include raising the one-off tax reduction for 2008-09 salaries tax and tax under personal assessment from 50% to 100% - with a ceiling of $8,000.

The rates in the 2009-10 fiscal year will be exempted the whole year, with a ceiling of $1,500 per quarter per household. It is estimated that 90% of residential and 60% of non-residential properties will benefit.

The Government will pay the basic rent for 700,000 public housing estates tenants for two months, while recipients of social welfare and disability allowances will receive an additional one-month payment.

Students from families receiving social welfare assistance will get $1,000 subsidy in the new school year.

Financial backing for small and medium-sized enterprises will be strengthened to allow them to borrow more money from banks. Business registration fees and entertainment and restaurant licence fees will be waived for a year.

Mr Tsang added more temporary jobs will be created through the anti-pandemic campaigns being conducted by various departments, and the enhanced Operation Building Bright project.

Early implementation

He has asked bureaux directors to explain the measures to Legislative Council Panels as soon as possible, and to expeditiously follow up on proposals requiring legislative amendments or funding approval.

"We hope to secure the necessary authority to implement this package of measures before the LegCo recess this summer," he said.

The Executive Council agreed the additional measures are timely and sensible and will help businesses preserve and promote employment.

Non-official Members Convenor Leung Chun-ying said the revenue concessions in the relief package which intend to ease the pressure on people's livelihoods will help tide them over the economic difficulties brought about by the global recession.