Political situation
Written by: Peng Zhuowei, Wu Zhuoan, Zheng Baosheng
2021-02-24 15:11
The last update date: 2021-02-24 17:39
[Budget 2021/Electronic Consumer Vouchers/Stock Stamp Duty] The new "Budget" was released today (24th). Financial Secretary Chen Maobo announced that it will be issued in installments to Hong Kong permanent residents and new arrivals aged 18 or above A total of 5,000 yuan in electronic consumer coupons will be issued.
However, other "sugar distribution" measures have shrunk significantly. The CSSA and fruit grants are "sugar reduction" more than "half-month food", and the scale of measures such as rate concessions and tax rebates has been reduced.
Chen Maobo attended the "Budget" press conference at 3 pm and said that he would strive to register electronic consumer vouchers during the summer vacation and distribute them in five months. The vouchers can be used for consumption in local online stores, but not overseas online consumption.
[16:15] The upper limit of salaries tax relief was lowered from 20,000 yuan to 10,000 yuan. When asked whether he had overlooked the plight of the middle class, Chen Maobo said that he hopes everyone will understand, because the deficit is huge and there are various aspects in terms of limited financial commitment Take care and say "Sorry" to the middle class.
It is said that the Greater Bay Area does not have much attention in the Budget. Chen Maobo said that the Greater Bay Area is an important part of the future development and economy. For example, looking at the future development and positioning of Hong Kong, where the advantageous industries are, etc. clear.
He said that Hong Kong is part of the Guangdong-Hong Kong-Macao Greater Bay Area. Hong Kong's future development of financial services, such as Licaitong, must be cooperating with the Greater Bay Area.
For example, Chen Maobo said that Hong Kong is very attractive to the development of overseas talents. This is Hong Kong's advantage. However, the development and production of innovation and technology are mostly in Shenzhen and Huizhou. Hong Kong's cooperation with them can include the upper, middle and lower reaches of the industrial chain.
In addition, Hong Kong's air cargo industry also has a big advantage. Last year, Hong Kong's cargo handling volume fell by only 7% compared with the previous year under the epidemic.
He emphasized that Hong Kong's air transport status is very important, and it must lead the way. These are the areas that Hong Kong must promote.
He also pointed out that 8 billion yuan of national security expenditures are spent over several years. Foreign national security expenditures will be kept secret, and the government will disclose the contents according to the mechanism.
[15:00] The government allocated 15 billion yuan to set up the "100% Guaranteed Personal Preferential Loan Program" with a maximum loan of 80,000 yuan to help the unemployed tide over the difficulties temporarily.
Regarding questions and criticisms of the government's "doing for what is done," Chen Maobo pointed out that the loan plan hopes to provide the unemployed with an option so that they can use it "if it is needed."
Regarding RTHK's alleged reduction of some sub-items of expenditure, Chen Maobo emphasized that it was handled impartially in accordance with the procedures for resource allocation. As for the details, he said he had no information on hand.
[15:58] Some reporters are concerned about how the government will increase revenue and reduce expenditure, and whether the Lantau Project will change tomorrow. Chen Maobo responded that in the face of a severe financial situation, the government will save money. The civil service establishment will have zero growth in the coming year, and government expenditures in 2022/23 will be even greater. It will be reduced by 1%. As for tomorrow, Lantau will have the opportunity to generate revenue for the government. The government will pay attention to the preliminary research and emphasize that there is no need to worry too much in the short term.
Chen Maobo also pointed out.
Hong Kong currently levies taxes based on geographical sources. Under the current economic environment, this year may not be suitable for revising the salaries tax and profits tax rates.
Regarding the issue of 5,000 yuan consumer coupons, Chen Maobo said that too many restrictions are inappropriate. In addition to goods, it may also be applicable to the service industry.
The relevant budget mentioned that the Bureau of Finance and the Treasury and the Rating and Valuation Department have been asked to review the rates system. Chen Maobo pointed out that it has nothing to do with the property market management measures. Liu Yan added that the progressive system is related to the principle of more pay by the able, and the government hopes to pay The main legal liability for rates is transferred from the user of the property to the owner.
[15:54] Chen Maobo said that the government will discuss cooperation with more than one stored-value tool, hoping to give citizens a choice.
He said that the details of consumer vouchers will be announced as soon as they are finalized, so that merchants who have not installed electronic support can install them as soon as possible. As for whether they will subsidize the payment of tool installation fees, Chen Maobo said: "This can be seen."
As for the use of the Future Fund, Chen Maobo only said that this time only the investment income that has not been recorded in the past was recorded. As for the work of the Hong Kong growth portfolio, the government is proceeding.
The "Budget" will announce that the number of civil servants will be frozen from 2021 to 22, with zero growth in the civil service establishment.
Without affecting people’s livelihood expenditures on education, health, etc., the reduction of government recurrent expenditure allocations in 2022/23 by 1% is reminiscent of Chief Executive Carrie Lam Cheng Yuet-ngor’s campaign for the election of the Chief Executive, saying that a comprehensive review was "0-1-1" and that The policy of cutting resources has caused poor morale among civil servants.
The Permanent Secretary for Financial Services and the Treasury, Liu Yan, explained that the government can only reduce internal expenditures without affecting people's livelihood expenditures. He also pointed out that labor accounts for 60% of the overall government expenditure.
She pointed out that civil servants achieved zero growth and reduced general daily expenses on this basis, such as lamp oil and wax, and outsourced some government work. She described the cost reduction work as challenging and determined, hoping to take this opportunity to make the public feel Peace of mind, because spending cuts will not affect public services or expenditures.
When asked whether the current "Budget" is the "homework" for the chief executive, Chen Maobo said that the government's primary task is to prevent and fight the epidemic and restore the economy. He also said that he is simply through the consultation process to understand the "pain points" of the society and the expectations of the public , From then on through the "Budget" to do their best.
Chen Maobo: Elderly can use Octopus to get consumer coupons
[15:52] A reporter asked why some elderly people don’t have smart phones, so why don’t they send money directly. Chen Maobo said that taking the elderly allowance as an example, family members or other people will assist in the application, and one of the ways to distribute Octopus is Hong Kong is also very popular, so he believes that there are enough channels for the elderly to obtain electronic consumer vouchers.
The society has questioned why unemployment loans are provided instead of unemployment assistance. Chen Maobo believes that the economic recession will not last. Therefore, this option is provided. If the citizens repay the loan on schedule, the government will refund all interest so that the citizens in need can tide over the difficulties.
Chen Maobo said that the mainland has strong economic growth, and if Europe and the United States successfully control the epidemic, the economy will rebound rapidly. Therefore, I believe that Hong Kong's economy will grow well in the middle of this year. He emphasized that although we still need to be careful of economic fluctuations, we should not be too pessimistic.
Did not respond to whether "love the party"
[15:33] A reporter asked how this year’s "Budget" did not send money, unemployment assistance, etc., and asked Chen Maobo how to face social expectations.
He responded that the fiscal deficit for 2020-2021 will reach 550 billion yuan, due to several rounds of epidemic prevention and anti-epidemic measures, and this year there will also be a deficit of 101.6 billion yuan, which includes green bonds, future fund allocations and other funds, if not included With the above funds, the deficit can reach 180 billion yuan, and the situation remains severe.
Chen Maobo said that he understands that this year’s budget has failed to meet everyone’s expectations, and that the external economic environment will be very variable in the future. The government has tried its best to provide support to the people in need, but it still has the strength to withstand emergencies in difficult times. Everyone understands that the government has done its best.
When asked why citizens were allowed to apply for consumer vouchers during the summer vacation, he pointed out that not only did he communicate with a stored-value tool vendor, he also pointed out that in February the public distribution of money was announced, and the registration was opened to citizens in June.
As for the 8 billion national security funding, Chen Maobo said that it had been paid in December last year and a special grant was set up. The government did not allocate funding for national security in the Budget.
When asked twice whether he "loves the party," Chen Maobo did not respond.
Financial Secretary Chen Maobo held a press conference to introduce the budget.
(Photo by Li Zetong)
Hong Kong stocks increase stamp duty. Chen Maobo: The stock market always fluctuates
[15:22] Chen Maobo said that consumer vouchers can only be used for local consumption. In principle, online purchases of goods in local shops are allowed, but the use of consumer vouchers for overseas online shopping will not be allowed.
As for whether Hong Kong residents living overseas can use consumer vouchers online, Chen Maobo said that they will only be issued to permanent residents who have lived in Hong Kong for a period of time and new immigrants living in Hong Kong.
Speaking of increasing the stamp duty on stocks, Chen Maobo pointed out that considering the need to promote the development of the securities market and the competitiveness of the stock market, he described the increase in the 0.03% tax rate as "not a high percentage."
When asked about the announcement of the increase in stamp duty on stocks, the local stock market plummeted. Chen Maobo pointed out that not only the local stock market has adjusted, but also overseas stock markets have adjusted with similar adjustments. He described that the stock market will always fluctuate.
▼Budget 2021 Benefits Measures Lazy Package▼
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[15:20] A reporter asked whether accountable officials will reduce their pay this year. The Permanent Secretary for Financial Services and the Treasury, Liu Yan, said that civil service pay has a mechanism. As for the chief executive and accountable officials, the pay was reduced last April. 10% for one year. The Chief Executive also announced in July last year that there would be no salary increase, and it is still in effect until June 30.
Repeatedly asked about Guoan’s 8 billion yuan expenditure Chen Maobo: open and transparent
[15:05] A reporter asked that the expenditure related to the National Security Law will reach 8 billion yuan in the next year. The Financial Secretary Chen Maobo responded at the press conference that government expenditures in the last quarter have been announced and the National Security Law also mentioned that. He will explain this in the Legislative Council documents in the future.
He later pointed out that the expenditure related to the National Security Law in the next year will reach 8 billion yuan. Chen Maobo said that the related funds have been paid, emphasizing that it is absolutely open and transparent, and there is no plan to have related expenditures in the next year. No mention.
Regarding the mention in the Budget that the Bureau of Finance and the Rating and Valuation Department has been asked to review the rates system, including whether a progressive rates system should be introduced and constant concessions for owner-occupied properties, Chen Maobo pointed out that it is now a suitable opportunity for review. But the emphasis has nothing to do with cracking down on property speculation.
As for the 5,000 yuan consumer voucher, Chen Maobo said that it is different from the policy goal of distributing money last year. This year, social events and the epidemic have led to an economic downturn. He hopes to increase consumption in Hong Kong.
He also pointed out that after today’s announcement, the government will find payment tools for discussion, but admitted that the use of electronic papers is more complicated. It is currently tentatively distributed at $1,000 per month for 5 months, and will strive to start registration for the summer vacation.
(Photo by Liang Pengwei)
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