And what's in it for me?
Good news on the financial front: Apparently Hong Kong is raking in money hand over fist, with a huge budget surplus. So what does that mean? Kickbacks to all, both locals and gweilos! It's really a mixed bag in the end, though.
1) The taxes on beer and wine imports has been eliminated. Gone. Squelched. Yaaay! The only thing that is taxed in this city is wine, liquor and spirits, and they've gotten rid of 2/3 of that, and the part that affects me. In a way, this pretty much makes up for the feeble/nonexistent raises I've gotten since I arrived in Hong Kong, if the savings are passed along to the drinkers. That said, the last time they cut taxes on beer, all of it was not passed along to the consumer. The distributors just looked at the tax cut as a way to build in a higher margin to their profits; if the tax on a bottle of beer was lowered $4HK, they would cut their price $3HK.
Plus, considering the main imported beer is from Belgium, it's a wash at best because the euro keeps on getting stronger and stronger. (The HK $ is tied to the US $, so as the greenback tanks, so does my honky.)
Plus, as a coworker pointed out, the government needs to set aside some of this surplus to pay for liver treatments at the public hospital because of said tax cut.
2) Tax cuts! Well, on my salary at least. The maximum tax rate will now be 15 percent, which means my tax burden will fall slightly below that when all is said and done. Plus, I will get a one-time tax reduction of $25,000 HK, or about $3300 US give or take a little bit. Puts the US stimulus package of $600 US per person to shame. No real downside to this one.
3) Free electricity. This one is strange, but does make sense in it helps all. Everyone who has residential electrical service - I assume that means me, as the bill comes in my name - will get $1800 HK for their electrical bills. Yes, free power. In the wintertime, that pays my power bill for 4 months; in the summertime, that pays about a month and a half of my bill when the air conditioner is running full time.
That said, a big part of the budget announcement was the government acknowledging the environment is a top concern here. So what better way to help clear the skies than grants for everyone so they can blast their air conditioning more than ever?
1) The taxes on beer and wine imports has been eliminated. Gone. Squelched. Yaaay! The only thing that is taxed in this city is wine, liquor and spirits, and they've gotten rid of 2/3 of that, and the part that affects me. In a way, this pretty much makes up for the feeble/nonexistent raises I've gotten since I arrived in Hong Kong, if the savings are passed along to the drinkers. That said, the last time they cut taxes on beer, all of it was not passed along to the consumer. The distributors just looked at the tax cut as a way to build in a higher margin to their profits; if the tax on a bottle of beer was lowered $4HK, they would cut their price $3HK.
Plus, considering the main imported beer is from Belgium, it's a wash at best because the euro keeps on getting stronger and stronger. (The HK $ is tied to the US $, so as the greenback tanks, so does my honky.)
Plus, as a coworker pointed out, the government needs to set aside some of this surplus to pay for liver treatments at the public hospital because of said tax cut.
2) Tax cuts! Well, on my salary at least. The maximum tax rate will now be 15 percent, which means my tax burden will fall slightly below that when all is said and done. Plus, I will get a one-time tax reduction of $25,000 HK, or about $3300 US give or take a little bit. Puts the US stimulus package of $600 US per person to shame. No real downside to this one.
3) Free electricity. This one is strange, but does make sense in it helps all. Everyone who has residential electrical service - I assume that means me, as the bill comes in my name - will get $1800 HK for their electrical bills. Yes, free power. In the wintertime, that pays my power bill for 4 months; in the summertime, that pays about a month and a half of my bill when the air conditioner is running full time.
That said, a big part of the budget announcement was the government acknowledging the environment is a top concern here. So what better way to help clear the skies than grants for everyone so they can blast their air conditioning more than ever?














