The Financial Secretary has urged legislators not to worsen the deficits by voting down some of his revenue proposals in the Budget.
In a letter to legislators yesterday, Donald Tsang Yam-kuen made it clear that some people would have to bear a heavier burden given the need to raise additional revenue in the next financial year.
'This is a price we need to pay and cannot avoid,' he said, because 'the other option of widening the tax base cannot find any favour with the community at present.' Proposed increases in stamp duty on property transactions, betting duty, tunnel tolls, parking meter charges and fixed penalties for traffic offences were 'moderate', he said.
'The strategy involves increasing taxes on a highly selective basis . . . I have to stress that none of these measures is targeted at individual industries.
'I believe that within the clear economic, financial and legal constraints, the proposals we have put forward are moderate and reasonable.
'More important, we must consider them as one package, and not selectively. Otherwise, the deficits may be even more serious.' He admitted persistent financial deficits would erode Hong Kong's reputation in upholding fiscal prudence and would damage investors' confidence.
