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| Employers may get up to $60,000 in tax credit for every FDH they hire |
Financial Secretary Paul Chan is expected to announce a tax deduction for employers of foreign domestic helpers when he delivers his Budget Report today, Wednesday.
The only question is,
how much will it be?
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Newspaper reports
recall Chan saying during a consultation session with legislators back in
January that he would include a deduction for FDH employers, as this would help
ease the financial burden on middle-class families.
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But some legislators
like Frankie Ng of the pro-Beijing Democratic Alliance for the Betterment of
Hong Kong said even those in the low income bracket would benefit as many of
them are compelled to hire FDHs because of insufficient child-care centres in
the city.
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Apart from the DAB,
other political parties have backed the proposal, and suggested a tax deduction
cap of up to $60,000.
The DAB wants a
ceiling of $56,760 for each helper hired by a taxpayer, while the New People’s
Party of Executive Council convenor Regina Ip is suggesting a cap of $55,000.
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Yet another group formed
by four independent legislators called “A4 Alliance” has proposed setting the
limit at $60,000.
Another lawmaker, NPP's
Eunice Yung has called on the government to exercise leniency in considering
the applications of families that need to hire more than one helper.
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Yung said such an
approach would help boost the birth rate in Hong Kong as parents are spared the
burden of sharing in household chores.
She said paying for
helpers has become part of the expenditures in a household where both parents
work.
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