Economic development top priority: FS
February 26, 2014
Financial Secretary John Tsang says his primary responsibility is to promote Hong Kong’s economic development, and maintain a sound business and employment environment.
Speaking at the 2014-15 Budget press conference, Mr Tsang said he made the statement in the closing remarks of his Budget speech this morning, and he aims to fulfil the pledge.
He asked people not to focus on the one-off relief measures in the Budget, but to look at recurrent expenditure - which stands at $307.4 billion for 2014-15, 7.8% more than the previous year.
He said increased investment in areas such as healthcare, economic development and education benefits all.
On the possibility of raising tax, Mr Tsang said it is always a controversial move for governments to raise taxes and if Hong Kong must do it, it will go through a thorough consultation process first. He added that he did not think Hong Kong taxpayers need to worry about tax payments as the level of tax charged is among the world's lowest.
He noted the reduction in manpower will impact Hong Kong’s economy, and the Government will need to take a closer look at its financial position to come up with a plan to tackle the issue.
Regarding the "Future Fund" proposal, Mr Tsang said the Government will ask the Working Group on Long-Term Fiscal Planning to give more details and consult stakeholders before making a final decision.
Attending a TV forum this evening, Mr Tsang said he did not see a need to introduce new tax at this point in time.
He stressed that a low and simple tax system is Hong Kong’s competitive advantage, which is significant in facing the challenges of economic globalisation and should be maintained.
Noting the problem of labour shortages in some industries, Mr Tsang said discussions on labour imports should be carried out on the basis of safeguarding the local workers' interests.
He also suggested providing more training to young people to increase the workforce for some industries.
