To help enterprises lower their operating costs in a difficult external economic environment and to minimise unemployment, the following measures will be introduced:
- Enhance the existing SME Financing Guarantee Scheme by increasing the maximum loan guarantee ratio to 80% for which the Government will provide a guarantee commitment of $100 billion while the guarantee fee will be lowered.
- The Hong Kong Export Credit Insurance Corporation will offer new policy terms which will include special concessions for SME policyholders who will be allowed to insure their exports only for places and buyers of their choice, and will be entitled to various premium discounts.
- Waive business registration fees for 2012–13. This proposal will cost the Government $1.9 billion.
- Reduce profits tax for 2011–12 by 75%, subject to a ceiling of $12,000. This proposal will cost the Government $1.12 billion.
- Halve the charges for import and export declarations and abolish capital duty levied on local companies. These measures will cost the Government $840 million a year.