The budget speech reflects in many ways a ‘business as usual’ approach, with few substantial new or longer term initiatives introduced or flagged. One-off relief measures such as reductions in profits tax and salaries tax payable for 2015/16, increases in personal allowances, and waivers of rates and fees continue to be a recurring theme. Particular industries highlighted for additional/specific support included the tourism industry.
The Financial Secretary also discussed what he described as the “new economic order.” In his view, key to embracing this is nurturing innovation, and he highlighted a series of achievements and future initiatives. The proposals stopped short of the direction where certain other jurisdictions have headed, for example, in the case of tax incentives for research and development activities.
Read a February 2016 report prepared by the KPMG member firm in Hong Kong
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