The Government will introduce a range of tax cuts and tax exemptions and launch more social welfare projects next year in line with its policy to share with the people the benefits reaped from the rapid economic expansion. The Chief Executive, Mr Edmund Ho Hau Wah, disclosed this when he delivered the Policy Address for the fiscal year 2008 in the Legislative Assembly this afternoon. Tax-free income allowance is to be increased from 95,000 patacas to 120,000 pacatas, while profit tax for businesses with annual profit of less than 200,000 pacatas will be waived, up from the current 32,000 patacas. The stamp duty for first-time homebuyers who are Macao citizens will be waived for properties valued up to 3 million patacas. Real estate tax for all non-rental flats will be exempted and tax on rental apartments halved. These initiatives, along with some extended tax-reduction and tax-waiver measures adopted from the previous year, will cost the administration 1.1 billion pacatas. To expand social welfare coverage, the Government is planning a 20 per cent increase on the basic cost-of-living index, a reference scale for distributing subsidies. Aside from the Social Security Fund, which will be revised in the future, the Government will introduce a non-mandatory central provident fund scheme, partly funded by the administration, to help residents attain a sustainable lifestyle in retirement. Mr Ho also announced an increase in salary for civil servants by revising the salary index from the present 55 patacas to 59 patacas, a rise of 7.27 per cent. On housing, the Government will continue to build more public housing to accommodate the needs for homes, in particular by the younger generation. To boost education and nurture more qualified professionals, the Government will increase the number of scholarships and study loans for college students, with some targeted at those from middle class families. The Commission Against Corruption's powers of investigation will be extended from the present public to cover the private sector after the Government introduces the relevant legislation next year. Speaking about the economy, Mr Ho pledged to continue the adequate diversification of the industrial portfolio, support the small- and medium-sized enterprises, relieve the shortage of human resources and ensure enterprises employ local citizens first.
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