An accounting group yesterday recommended bringing salaries tax brackets and personal allowances back to 1997-98 levels.
But the Hong Kong branch of the Association of Chartered Certified Accountants advised the government not to change the company profits tax rate, which stands at 16 per cent.
The recommendations came as the association offered suggestions on how to cut the budget deficit and speed an economic recovery. It will submit a report to the government on its recommendations.
'Any increase in the profits tax rate would hamper Hong Kong's tax competitiveness,' said Jimmy Chung Wai-kwok, co-chairman of the group's budget sub-group.
The proposals are the latest in a long line of recommendations to the government made by investment banks and accounting firms and societies on how the shortfall should be tackled.
The deficit has reached record levels for most of the year, hitting $70.8 billion for April-November, and while exports have boosted the economy, local business conditions remain poor.
