TUNG Chee-hwa seems to have put to rest any lingering idea that this week's Budget may see the introduction of a sales tax.
In a recent newspaper interview, the Chief Executive pledged that his administration would do nothing to impede Hong Kong's emergence from the recession.
'The economic recovery has just begun. [We] are at the most important stage. Whatever we do, [we] do not want to affect the economic recovery,' Mr Tung said.
Like many of the Chief Executive's remarks, that broad principle can mean anything or nothing, depending on how it is interpreted.
But it does seem to reflect the mood of the community. Even if the levying of a modest sales tax did not actually harm consumption it would certainly do enormous damage to the morale of the general public.
This is because, despite signs of an economic revival, public confidence remains fragile and the road to full recovery uncertain.
