Financial chief faces budget critics

Hong Kong's financial chief yesterday faced a critical audience of top businessmen as he continued to defend his unpopular package of tax increases.

Amid growing discontent over the controversy surrounding his purchase of a new luxury car and his budget proposals, Antony Leung Kam-chung found himself in the surprise position of facing opposition at the traditional post-budget luncheon jointly hosted by leading chambers of commerce.

Mr Leung landed himself in controversy over his remarks defending increases in profit and salary taxes over the past week. He further angered the public when it was revealed he had bought a new Lexus shortly before he raised the registration tax for luxury vehicles.

Businessmen at the luncheon spared Mr Leung from questions on the car controversy, but accused him of being unfair in sparing civil servants from a steeper pay cut while cutting the wages of foreign maids and raising profits and salaries taxes.

'You say the government measures are fair and reasonable. Can you answer me is this [sparing civil servants] fair?' a member of the audience asked. The question won several rounds of applause at the Convention and Exhibition Centre.

Mr Leung, in an exceptionally short 15-minute keynote speech, stressed that his budget measures were 'fair, reasonable and affordable'.