HONG KONG—Hong Kong said it would hand out 6,000 Hong Kong dollars (about US$770) to each of the Chinese territory's adult permanent residents in a bid to diffuse widespread public discontent over a previous plan, even though the sweeteners could add to the city's inflationary pressures.

Following talks with pro-government lawmakers, Financial Secretary John Tsang offered to give the cash payments to each of the city's six million permanent residents aged 18 or above and waive 75% of a tax on individual salaries, subject to...