Plea for hi-tech tax breaks
Non-affiliated legislators urged the Financial Secretary yesterday to offer more tax concessions to businesses involved in high-technology development.
'The Government's aid to businesses in technology development is still not enough,' said Professor Ng Ching-fai, who heads the science faculty at Hong Kong Baptist University.
Professor Ng suggested the Government lift the allowance for corporate investment in hi-tech infrastructure to 200 per cent.
Currently companies enjoy a 100 per cent tax break on the cost of bringing in computers and other hi-tech equipment.
Bernard Charnwut Chan, who represents the financial services sector, called for extensive tax cuts for the industry, in an attempt to compete with other cities in the region.
'Singapore has introduced a wide range of tax concessions to attract foreign investment. If we don't follow suit to enhance our competitiveness, I fear the major transnational financial corporations will all be drawn to Singapore,' Mr Chan said.
He urged the Government to reach agreement with other countries to avoid double taxation, which means foreign firms are charged by both Hong Kong and their own governments on profits.
Ma Fung-kwok agreed with Professor Ng that he would not support slashing profits tax, saying it would not be the best means to stimulate the economy and generate a favourable business environment.
They stipulated they would generally accept a reasonable budget deficit and Professor Ng specified the limit at $40 billion.
