Deputy Financial Secretary Michael Wong said an additional HK$900 million to HK$1 billion would be required should Wang Chi House – the only block of flats in Wang Fuk Court not to have been directly ravaged by an inferno in November – be included in the government's buyout plan.

The administration has set aside HK$4 billion in the budget to acquire the other seven blocks at the Tai Po estate from their owners on top of the HK$2.8 billion forthcoming from a fund set up to receive public donations following the devastating fire that killed 168 people.

At a Legislative Council finance committee meeting discussing the new budget, Bill Tang of the Federation of Trade Unions said more than 70 residents from Wang Chi House had told him that they wished to be included in the scheme.

The government has said it will consider expanding the scheme to include Wang Chi House if at least half of its residents reached a consensus on joining.

Tang asked how the government would fund a possible extension of the buyout to their block.

Wong, who chairs the task force on emergency accommodation arrangements for Wang Fuk Court residents, said it would have to apply for additional funds from Legco in that event.

On another matter, Christine Fong said many people wanted to see the reinstatement of the HK$2,500 annual student grant that was removed in the 2025/26 budget.

She also said that the 100 percent salaries tax reduction capped at HK$3,000 proposed for the coming fiscal year was too low and called for the ceiling to be raised to HK$5,000.

In response, Financial Secretary Paul Chan said the government had to weigh many factors in its financial blueprint for the year ahead and that the level of "sweeteners" in the latest budget had received careful consideration to balance fiscal health with public support.

“As for the student grant, it was cancelled because the government wanted the support measure to be more targeted. And the student grant of HK$2,500 didn’t have any means testing. For those who passed the means test, we are continuing to provide subsidies,” he said.

“Last year we spent about HK$7.8 billion on such support measures.

"This year we have made some enhancements to rates concessions and personal tax allowances. And these will involve HK$15.6 billion of lost potential revenue.

“We have just seen a surplus in our budget. We also need to spend money and issue infrastructure bonds. After considering the fiscal position, this policy blueprint allows us to strike a balance.”

Over the decision to end the “One-for-One Replacement” scheme for electric vehicles, several lawmakers raised concerns that the move might have a negative impact on the market.

The government will stop providing higher first registration tax concessions for those who replace their old car with a new electric one after the scheme expires at the end of March.

Chan stressed that the move was not aimed at increasing revenue and that the scheme had run its course.

“We have rolled out the scheme for quite a number of years and found it appropriate to cancel the scheme now. Public finance is not our consideration in the decision to cancel the scheme,” he said.

“We are already seeing a lot of people flocking to buy EVs before the scheme's expiry so there might be a drop in EV sales in the near future. However, speaking generally, we will see people continue to opt to buy EVs as they have a high awareness where environmental protection is concerned.”

Chan said 70 percent of newly registered vehicles were EVs, saying the focus moving forward would be to build more EV charging facilities.



Edited by Thomas McAlinden