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Hong Kong's Financial Secretary, Paul Chan, has announced measures to boost the territory's economy in his 2017-2018 Budget.
Chan said the Government will have a surplus of HKD92.8bn (USD12bn) in 2016-17, far exceeding the original estimate of HKD11.4bn. Some of this extra revenue will be reinvested to stimulate the economy.
Chan announced a number of one-off measures, including a further 75 percent reduction in profits tax, salaries tax, and tax under personal assessment for 2016-17, subject to an unchanged ceiling of HKD20,000 per taxpayer.
Starting from 2017-18, Hong Kong will increase: the "width" of marginal tax bands for salaries tax; the disabled dependent allowance and dependent brother or dependent sister allowance; and the deduction ceiling for self-education expenses. The entitlement period for home loan interest deduction will also be extended to 20 years.
Last, to boost the aviation financing sector, the Government plans to introduce a tax bill into the Legislative Council in 2017. This would amend the Inland Revenue Ordinance to offer tax concessions that would be aimed at attracting aircraft leasing companies to Hong Kong.
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