Henry Tang says he's heard the calls to cut taxes and rates but it will be difficult to meet the public's expectations
Financial Secretary Henry Tang Ying-yen yesterday pledged the government would 'share its wealth with the public' when the economy is good, and said he had heeded calls to cut taxes and rates.
Mr Tang said he was confident of achieving a surplus of several billion dollars this year, but stressed a balance had to be struck between, on the one hand, adhering to the principle of keeping expenditure within the limits of revenue and striving for a fiscal balance in drawing up its budget, as stipulated under the Basic Law, and, on the other hand, sharing wealth with the public.
Speaking at a pre-budget public forum, Mr Tang said it would be difficult to compile the budget this year as the public's expectations had increased in the light of the government's healthy fiscal position.
He said three questions had to be answered before deciding whether to cut taxes - 'firstly, whether it is beneficial in the long-term interests of Hong Kong, secondly, whether it is conducive to the economy and creating jobs and, thirdly, whether we have the financial strength to do so.'
Mr Tang reiterated that he would listen to the public's views on the four components of salaries tax - personal allowances, the tax bands, marginal tax rate and standard tax rate - saying they should be considered individually.
He also acknowledged a wine seller's comment that Hong Kong's tax on wine was too high, and pledged to consider this when drawing up the budget.
