The Chief Executive, Mr Ho Iat Seng, attends a plenary session of the Legislative Assembly, to give a review on the Government's work in the fiscal year 2024, and to introduce a budget proposal for the fiscal year 2025.
The Chief Executive, Mr Ho Iat Seng, today presented a budget proposal for 2025, suggesting continuation of a number of tax relief measures and subsidies for disadvantaged groups, as well as of the Wealth Partaking Scheme and the health voucher scheme.
Mr Ho added the recommendations regarding the budget proposal for next year were formed after discussion with, and agreement from, the sixth-term Chief Executive, Mr Sam Hou Fai. Mr Ho noted the actual policy address for 2025 would be presented by the team of the sixth-term Government, which will take office on 20 December. The incumbent Government team made its budget recommendation – in line with the Basic Law and the Budget Framework Law – with a view to ensuring the city’s stability and the normal operation of public departments.
The Chief Executive today delivered the budget proposal for 2025 during a plenary session of the Legislative Assembly. The 2025 budget proposal estimated revenue from gaming next year would be 240 billion patacas.
The Chief Executive pointed out that the 2025 budget proposal primarily includes: administrative expenses necessary for the normal operation of public departments; expenditure that the Government has committed to and must pay next year; appropriations for projects scheduled for the first quarter next year; and measures for the continuation of tax reductions and fee waivers implemented in recent years.
In the proposal, the Government suggested continuing with existing tax-reduction and tax-exemption measures. The Government would continue implementing a 30-percent deduction to the personal income tax payable, with the basic annual allowance set at 144,000 patacas. The personal income tax allowance for employees over 65 years and for eligible employees with disabilities would be set at 198,000 patacas. The Government would continue the 60-percent rebate of personal income tax payable by each Macao resident, subject to a ceiling of 14,000 patacas. Under the proposal, personal income tax rebates related to the fiscal year 2023 would be disbursed in 2025.
The Government would continue implementing tax cuts and waivers, including waivers of business tax, hawker-licence fees, wet-market stall rents, inspection and quarantine fees for live food, the stamp duty on life insurance and other forms of insurance, and the stamp duty on bank services; as well as waivers of signboard taxes for businesses (excluding tobacco advertisements), and exemption of restaurants from tourism tax.
Regarding tax cuts and waivers, the Government recommended continuing to waive the first 3,500 patacas of real estate tax for Macao residents, and to reduce the real estate tax rate for leased properties to 8 percent of the taxable income.
For business-related taxes, the Government suggested that: profit tax allowance remain at 600,000 patacas; there be additional deduction of tax to support expenses related with research and development projects; there be waivers of profit tax for local enterprises on revenue gained from Portuguese-speaking countries; that waivers of stamp duty be applicable to entrance passes and to tickets for cultural and arts performances, as well as those for exhibitions and entertainment; and that there be a waiver of auction stamp duty.
The budget proposal for 2025 also suggested continuing with: exemption of stamp duty on the first 3 million patacas of a residential unit’s value, applicable to Macao permanent residents purchasing residential property for the first time; the waiver of profit tax on investment income from local bonds; the exemption of stamp duty on the issuance and acquiring of such bonds; and waiver of investment fund monitoring charge.
Mr Ho said that the overall application of new measures and continuation of tax cuts, waivers and rebates, was expected to have a net negative impact on Government tax revenue amounting to 4.833 billion patacas.
Meanwhile, bus fare concessions for the elderly, students, and other members of the public, would be continued in 2025. Subsidies for water and electricity bills for residential units would be continued.
There were also recommendations that in 2025 existing subsidies for disadvantaged groups should be continued, as well as the continued payment – to employers who are eligible for it – of subsidies covering a maximum of 14 days of basic wages, in order to enable paid maternity leave for local female employees. In addition, temporary housing subsidies for eligible families on the waiting list for public housing, and the health voucher scheme, should be continued.
The 2025 budget proposal recommended continuing the initiative of injecting a 10,000-pataca initial allowance from the Government into the personal Social Security Fund account of every eligible Macao permanent resident. It also suggested continuing the initiative of injecting an additional 7,000 patacas into the personal Social Security Fund account of every eligible Macao permanent resident.
The Wealth Partaking Scheme would be continued in 2025, through the offer of 10,000 patacas to each permanent resident, and 6,000 patacas to each non-permanent resident.
Mr Ho said the Secretary for Economy and Finance, Mr Lei Wai Nong, would represent the Government in explaining to the Legislative Assembly the budget proposal for 2025.
