The finance chief will reveal that owners of multiple, pricey properties in Hong Kong will pay more tax and lose some concessions in the future to boost government revenue when he delivers his budget on Wednesday morning, the Post has learned.

Financial Secretary Paul Chan Mo-po is also expected to offer a fresh round of consumption vouchers and loans for residents and businesses in need due to the worsening fifth wave of Covid-19, sources said.

Given the heightened infection risks, Chan will deliver his budget speech, the last of his current term, via videoconferencing and lawmakers are restricted to asking a limited number of questions.

“The public is still in dire straits, and many need money urgently to buy sanitising and anti-epidemic items,” one source said. “The government cannot ignore these kinds of calls amid hard times.”

Community and political figures have expressed hopes for fresh financial relief, with many calling for a minimum of HK$5,000 (US$640) in e-vouchers or even HK$10,000 to be given to residents.

Chan, who dished out sweeteners worth HK$80 billion in last year’s budget, earlier said he would keep an open mind on another round of e-vouchers, as the deficit would be much lower than the original forecast of HK$101.6 billion (US$13 billion), thanks to higher income from land sales and stamp duty.

Another highlight of his speech is expected to be the results of a government review of property taxes, which is currently 5 per cent of a home’s annual rental value. A source said a higher rate would be introduced for owners of multiple, expensive properties, and while they were expected to continue to enjoy certain concessions, the rebates would be less than what was given to owners of less valuable flats. Owner-occupied properties might be exempted from the higher rates, the insider added.

But the revised approach might not be introduced until the next administration.

In last year’s budget, owners of an estimated 2.95 million residential properties all benefited from a rate concession, with the tax assessed by the Rating and Valuation Department on each unit discounted by HK$1,500 in each of the first two quarters of 2021, and by HK$1,000 in each of the remaining two.

For owners of 420,000 non-residential properties, they also enjoyed rate discounts of HK$5,000 in each of the first two quarters of the year, and of HK$2,000 the latter two.

Chan suggested at the time the government would review the policy, including introducing a progressive rating system and possibly providing concessions to owner-occupied properties on a regular basis. The primary liability for rates payment would also shift from the occupiers to the owners.

Analysts saw the review as means to increase government revenue, with some suggesting charging non-owner-occupied properties 15 per cent of the annual rental value, while maintaining the fee on owner-occupied flats at 5 per cent.

Calls have also been growing for greater support for small and medium-sized enterprises struggling to survive amid strict social-distancing rules.

Businesses have complained about the prolonged closure of a host of venues and the ban on evening dining inside restaurants. They have predicted billions of dollars in lost income and said they feared more shutdowns.

While Hong Kong’s unemployment rate has improved since hitting a 17-year high last year, labour minister Law Chi-kwong warned earlier that the recent curbs could force more people out of work.

The business community has been calling on Chan to extend the Special 100% Loan Guarantee Scheme to help businesses facing a cash flow crunch.

The scheme, launched in April 2020 and extended until the end of June this year, offers affected businesses loans of up to HK$6 million payable across eight years, with firms allowed to repay only the interest for up to 24 months.

As of last September, a total of HK$170 billion in loans have been granted under the scheme, as well as others, to 67,000 applicants, including 41,600 companies employing 610,000 people.

Chua Hoi-wai, Hong Kong Council of Social Service chief executive, said he hoped the government could provide more relief measures to impoverished residents, including providing subsidies to so-called “N-nothings”, referring to low-income people who do not live in public housing or receive comprehensive social security assistance.

Chua said in the past he did not want the government to provide handouts, as he believed its resources should be put into practical services, yet under the current circumstances, he agreed the financial chief can provide more sweeteners.

“The economy is so bad and people are having a difficult life,” he said.