HONG KONG, March 2 (Xinhua) -- Each permanent Hong Kong resident aged 18 or above will get 6,000 HK dollars (about 770 U.S. dollars) and reductions of 75 percent in salaries tax and tax under personal assessment, capped at 6,000 HK dollars, said the city's Financial Secretary John Tsang on Wednesday.
In announcing these revised measures to the 2011-12 Budget after meeting with some legislators Wednesday, Tsang said that under the new proposal, people can choose to draw the full 6,000 HKD through a platform depending on their needs, and there will be incentives to encourage them to save.
The new measure will replace the original proposal in the Budget which suggested injecting 6,000 HKD into Mandatory Provident Fund accounts, a system designed as a retirement protection and was launched in 2000 in the city.
This measure should be able to benefit most people in Hong Kong, including civil servants, housewives and retirees, added Tsang.
As for the needy who will not benefit from this new measure, he said other arrangements will be made. A separate sum will be set aside to provide relief.
Tsang said that the tax-reduction measure was proposed in response to the needs of the middle class.
He hoped that these new proposals can leave wealth with people, catering for their needs and views. (1 U.S. dollar equates 7.79 Hong Kong dollars)