HK financial secretary says different views have emerged to consumption voucher scheme

Hong Kong financial secretary Paul Chan said he has received different views and feedback towards the consumer voucher scheme as some people questioned the effectiveness of the programme. 

In his blog, Chan said he has heard some members of the public asking for the consumer voucher scheme to continue, while others have said it will involve a lot of public money - which should be spent in a more targeted manner. He added some people believed that the effectiveness of the consumer vouchers will be undermined amidst the pandemic as people cannot go outside to spend the money. 

Chan attended a Legislative Council’s Finance Committee meeting last Friday. He received calls from lawmakers to roll out another round of consumption vouchers during the meeting. Lawmaker Michael Tien suggested that the government could offer consumer vouchers worth of HK$9,000 (US$1155.8) to every eligible citizen and they could be given out in three phases. 

The Hong Kong government is currently working on the public consultation on budget for the 2022/23 financial year. Chan said some people expected the government to roll out one-off measures such as tax refunds and rates concessions, but these measures can only benefit citizens with higher income. He said, "If the government targets a specific group in our relief measures, it can easily cause backlash. The public would question the difference in treatment. However, if the relief measure benefits the general public, the government might be regarded as neglecting vulnerable groups."

Looking ahead, he concluded that the pandemic will still be the biggest variable of Hong Kong's economy, adding that the society should work together help contain the pandemic.  

Chan is expected to announce his budget on 23 February. He also announced the consumer voucher scheme in his budget last year. 

Additionally, the Hong Kong government said four operators of the consumption voucher scheme, including Octopus, Tap & Go, Alipay HK and WeChat Pay HK, added 4.7 million new users and about 96,000 business accounts. The scheme has also led the rising number of electronic payment transaction volume. Moreover, the initiative was expected to contribute 0.7% growth to Hong Kong's GDP last year. 

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