REACTION Business leaders said the Government had missed an opportunity to improve the territory's status as Asia's leading commercial centre.
They said Mr Tsang could have used part of the $31.7 billion surplus to lower corporate tax and given a clear signal that more cuts were in the pipeline.
Mr Tsang announced corporate profits tax would remain at 16.5 per cent.
He also foreshadowed a comprehensive review of profits tax to examine whether the system and business environment could be made more competitive.
He said: 'Hong Kong has long had a clear understanding between the Government and the business community that business decisions are best left to entrepreneurs and investors. The Government's job is to provide the right environment for business to grow.' James Tien Pei-chun, chairman of the General Chamber of Commerce, said he was disappointed the cuts were restricted to salaries.
Joseph Wong, tax partner at Deloitte Touche Tohmatsu, said the Financial Secretary had taken the 'no change in the handover year policy' a little too much to heart.