Tax break: Financial Secretary John Tsang has proposed a one-off tax reduction of 50% of salaries tax and tax under personal assessment for 2008-09, benefiting all 140,000 taxpayers.

Financial Secretary John Tsang has proposed a one-off tax reduction of 50% of salaries tax and tax under personal assessment for 2008-09, subject to a ceiling of $6,000.

In his 2009-10 Budget today Mr Tsang said the reduction will be reflected in the taxpayer's final tax payable for 2008-09, benefiting all 1.4 million taxpayers and costing the Government $4.1 billion.

He also proposed to waive rates for the first two quarters of 2009-10, subject to a ceiling of $1,500 per quarter for each rateable tenement. About 90% of domestic properties and 60% of non-domestic properties will not have to pay rates in these two quarters. It will cost the Government about $4.2 billion.

Also in the proposal was a 20% rental reduction for most government properties and short-term tenancies of government land for three months which will benefit more than 17,000 tenants. It will cost the Government $83 million.

Mr Tsang also proposed to extend the freeze on government fees and charges related to people's livelihood until March 31, 2010.