In his 2025-26 Budget Speech, Financial Secretary Paul Chan this morning announced measures to provide rates concessions, reduce salaries and profits taxes, and pay an extra allowance to eligible social security recipients.

Mr Chan said the measures had been devised in light of the economic pressures faced by some industries and people, and of the Government’s fiscal position.

In the first quarter of the next financial year, rates concessions for domestic and non-domestic properties will be provided, subject to a ceiling of $500 for each rateable property.

The measure is estimated to involve 3.12 million domestic properties and 430,000 non-domestic properties, and a reduction in government revenue of $1.5 billion from the former and of $200 million from the latter.

Meanwhile, salaries tax and tax under personal assessment for the 2024-25 tax year will be reduced by 100%, subject to a ceiling of $1,500, with the reduction being reflected in the final tax payable for the year of assessment. The same reduction, also subject to a ceiling of $1,500, will be applied to profits tax for the 2024-25 year of assessment.

With regard to salaries tax and tax under personal assessment, the reduction will benefit 2.14 million taxpayers and reduce government revenue by $2.9 billion. The profits tax cut will benefit 165,400 businesses and reduce government revenue by $200 million.

In addition, the Government will provide an extra allowance to eligible social security recipients that is equal to half a month of the standard-rate Comprehensive Social Security Assistance payments, Old Age Allowance, Old Age Living Allowance or Disability Allowance. Similar arrangements will apply to recipients of the Working Family Allowance.

Altogether, the extra allowance payments will involve an additional expenditure of about $3.1 billion.

Furthermore, to ease the burden on buyers of residential and non-residential properties at lower values, the maximum value of properties chargeable to a $100 stamp duty will be raised from $3 million to $4 million with immediate effect. 

This concession will benefit about 15% of property transactions and reduce government revenue by about $400 million annually.