FINANCIAL Secretary Donald Tsang Yam-kuen's maiden Budget has been applauded by the business community despite shortcomings pointed out at a post-mortem yesterday. Speaking at a Hong Kong General Chamber of Commerce lunch meeting, its chief economist, Ian Perkin, said that while the chamber was in favour of Mr Tsang's seven 'heavenly virtues' relating to low tax and the principle of prudence, it lamented the absence of a cut in profits tax and a concrete plan to use the surplus. Grant Thornton Bryne tax director Deborah Annells said: 'It's very good that he's picked up on the financial services sector and he's actually tipped the tilt in their favour.' She said it would have been better if Mr Tsang talked about the issue of double tax treaties and the double taxation to which companies with operations in China and Hong Kong were subject. Deloitte Touche Tohmatsu partner Yvonne Law said there was no forecast of extra jobs to be created with the $300 million to be put into retraining. She said the plan to boost high-technology industries was not concrete. She welcomed Mr Tsang's bid to boost bond issues with a cut in the tax imposed on interest income and trading profits from certain Hong Kong dollar debt instruments. The Business and Professionals Federation said it objected to the 14 per cent rise in income tax allowance because of fears that it would fuel inflation and further narrow the tax base. It favoured a one percentage point cut in profits tax and urged the Government to set a target for curbing inflation.