bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

The Budget deficit could reach $30 billion as the listing of the second phase of the Mass Transit Railway Corporation was unlikely due to the economic downturn, a legislator representing the accounting sector said yesterday.

Non-affiliated Eric Li Ka-cheung said the postponement would mean the Government would not generate an estimated $15 billion this financial year from the sale of a second batch of shares, after the successful partial privatisation a year ago.

The Government previously estimated a Budget deficit of $3 billion for this financial year.

'How could the MTRC still go ahead with its listing in such an economic climate?' Mr Li said.

He said his estimate of a $30 billion Budget deficit did not take into account any potential rescue measures by the Government.

He also predicted that government revenue from land sales would fall well short of the $10 billion estimate, with receipts at only $1 billion so far this year.

To help cash flow, Mr Li suggested the payment of salaries tax should be deferred for a year to help middle-income earners and negative-equity homeowners.

Taxpayers are due to pay 75 per cent of their provisional salaries tax for 2001-2002 in January and the extra 25 per cent in May.

Mr Li, who leads the Breakfast Group of independent legislators, suggested payments be rolled over to 2003 or paid in instalments after that date.

The proposal would cut government revenue by $25 billion to $30 billion. The Government also could consider rate exemptions for one year.

Meanwhile, in a submission to a committee reviewing widening Hong Kong's tax base, Mr Li urged the administration to cut the tax rate to 10 per cent for incomes below $1 million.

He said a low-rate sales tax was feasible, but not before 2006-7.



MTR listing delay 'may blow out Budget deficit to $30b'