Lobby groups push for tax cuts in budget
With the economy continuing to improve, professional groups and political parties have stepped up lobbying for tax cuts in the next budget.
The Hong Kong Coalition of Professional Services and the Democratic Alliance for the Betterment and Progress of Hong Kong held separate talks yesterday with Chief Executive Donald Tsang Yam-kuen to discuss his October policy address.
Speaking after the talks, Paul Chan Mo-po, of the Hong Kong Institute of Certified Public Accountants, said he had urged Mr Tsang to consider tax cuts if the economy continued to improve.
'We believe that all direct taxes, such as income and profits tax, have room for reduction,' he said.
He also wants the government to extend the period of eligibility for tax relief on domestic mortgages beyond the existing seven years allowed.
DAB chairman Ma Lik urged Mr Tsang to restore the basic personal allowance against salaries tax to $104,000, the level it stood at in 2003-04, from the present level of $100,000. He also suggested raising the tax allowance per child from $40,000 to $50,000.
The party also explained its proposal to make the former Kai Tak airport site Hong Kong's 'political hub', saying that moving the government headquarters from Central to southeast Kowloon instead of the Tamar site would allow for the highly profitable sale of the prime site in Admiralty for private development.
'It's just like the case in the United States. Washington is the political centre while New York is the economic centre. Our government headquarters need not be located in Central,' he said.
The party would not say whether Mr Tsang gave any response to the proposal but said his attitude towards the party's ideas was positive on the whole.
Leung Chun-ying, who leads the professional coalition, said dentists' groups had urged Mr Tsang to create a separate functional seat for dentists. They share a seat with doctors at present.
