Financial Secretary Paul Chan is considering tax breaks for people who rent homes to reduce the pressure of rising rents.

Discussing his 2018-19 Budget on a radio show today, he said the Government must study the operational issues regarding any tax deduction for renters, adding the Inland Revenue Department's computer system will need to be adjusted for this to happen.

Mr Chan added it will be difficult to implement the plan this year.

The Budget proposed to insert one more tax band and reduce marginal rates for salaries tax. Mr Chan said it is a bold move which will not be easily reverted.

The current favourable economic situation has allowed the Government to lower the tax rate to reduce the tax burden, he said, adding the Budget initiatives will aid those in need.