Financial news
Written by: Yue Yueting
2020-02-18 22:00
Last updated: 2020-02-18 22:00KPMG, the accounting firm, expects the Hong Kong Government to record a deficit of 47.7 billion yuan this fiscal year, the first deficit in nearly 15 years, mainly due to the introduction of relief measures, reduced stamp duties, and decreased land sales revenue. Kelly Leung, Partner of China Corporate Tax Advisory, said that the impact of the Sino-US trade war, local social movements and the pneumonia epidemic in Wuhan on the economy has not yet fully manifested. It is estimated that the Hong Kong Government ’s fiscal deficit will continue to increase in the next financial year, but the Hong Kong Government ’s finances The situation is stable. Even without income, fiscal reserves can still support recurrent spending for 31 months.
He Jiahui, a KPMG China corporate tax advisory partner, said the economy has deteriorated and the government should step up efforts to introduce relief measures. When the economy was better last year, the government had distributed more than 40 billion yuan of sugar; the previous year was more than 50 billion yuan. Compared with the SARS fiscal reserves of only 275 billion yuan, Hong Kong currently has 1.12 trillion fiscal reserves, which does not take into account foreign exchange reserves. Therefore, the government has the ability to introduce large-scale and decisive measures to relieve the SMEs and citizens. Difficulties, "the most important thing is in place."
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KPMG, the accounting firm, believes that the Hong Kong government should introduce immediate measures to ease corporate cash flow, and medium-term measures should stimulate local consumption. (Profile picture)
Spending to eligible Hong Kong residents: covering the food and beverage industry
The bank suggested that the government launch a consumer voucher to issue a 10,000 yuan consumption card to each 18-year-old Hong Kong permanent resident for general consumption, dining and leisure entertainment; seniors over 70 years of age can receive 10,000 yuan in cash through the old age allowance. He Jiahui believes that with the expansion of the pneumonia epidemic in Wuhan and fewer citizens going out, the retail industry and catering industry are the first industries to be affected. It is hoped that consumer coupons will help stimulate local consumption and bring chain effects to revitalize other industries.
In addition, the bank also recommends that the Hong Kong government launch measures to support small and medium enterprises, such as tax loss reversal, delay in tax declaration and payment deadlines, and exemption from some temporary tax payments for the next year, and exemption from rates for the next four quarters.
KPMG
