HK$137.5 billion financial relief package overview for businesses

The Legislative Council Finance Committee approved on 18 April 2020 a financial relief package of $137.5 billion. The Anti-epidemic Fund therefore rolled out the second round of measures for business as follows:

Firstly, Job retention, Job creation and Job advancement

  • Government to pay 1.5 million workers 50% of their wages, capped at HK$9,000 a month for 6 months. First disbursement will be on June 2020.
  • Provide support to employers in the catering, construction and transport (mainly taxi and red minibus drivers) sectors which are not completely covered by the MPF scheme (involving about 800 000 persons)
  • Grant a one-off subsidy to self-employed persons who made MPF contributions (about 215 000 persons)
  • Temporarily relax the asset limits of Comprehensive Social Security Assistance (CSSA) Scheme: To provide a time limited unemployment support scheme through CSSA Scheme. The asset limits for an able-bodied applicant will be increased by 100% for a period of 6 months.
  • To invest $6 billion to create around 30 000 time-limited jobs (up to 12 months) in the public and private sectors in the coming two years for people of different skill sets and academic qualifications, benefitting professionals and technicians, fresh graduates, middle level and grassroots workers.
  • A HK$800 million scheme to let workers learn new skills or let businesses apply more technology.

Secondly, Relief to hard-hit sectors

  1. Tutorial schools;
  2. Service providers and suppliers for schools;
  3. Registered coach under National Sports Associations and Sports Organisations
  4. Instructor of interests classes for organisations subvented by the Social Welfare Department;
  5. Private refuse collector;
  6. Local farm and agricultural producer;
  7. Exchange participants and Securities and Futures Commission (SFC) licensed individuals;
  8. Licensed individuals of the estate agency sector;
  9. Passenger transport sector
  10. Creative industries
  11. Tourism industry
  12. Construction sector
  13. Non-profit-making organisations (NPOs) running the Projects under the Revitalising Historic Building Saviation sector
  14. Catering sector
  15. In additional to above, the 11 Sectors are closed due to the measures for safeguarding public health imposed by the Government

Thirdly, Easing the cash flow and burden of businesses and individuals

  • Rental and Fee Concessions for Government Premises
  • Enhancing the SME Financing Guarantee Scheme
  • Deadline for payment of tax for year of assessment 2018/19 that will be falling due will be extended for 3 months
  • All borrowing institutions and non-profit-making international schools have the two-year loan repayment holiday
  • Student loan repayers concerned to inform them of the two-year loan repayment holiday
  • To extend the 75% waiver of water and sewage charges payable by non-domestic accounts for another four months from August to November 2020
  • To waive the registration/enrolment fees for healthcare professionals for three years
  • MTR to provide a 20% fare reduction for a time-limited period of 6 months start from 1 July, 2020.
  • To temporarily relax the monthly public transport expense threshold of the PTFSS from $400 to $200 for a time-limited period of 6 months start from 1 July, 2020.

For further information, please contact us

You may want to read: https://centreo.hk/hk137-5-billion-financial-relief-hong-kong-smes/

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