Hong Kong Financial Secretary Henry Tang (唐英年), going some way to meet public demand, announced yesterday modest tax breaks but balanced them with the start of consultations on a goods and services tax (GST).
In his annual budget speech, Tang said he will cut taxes by HK$1.5 billion (US$192 million) this year through a rejigging of tax bands as the territory had made a full recovery from the 1997-1998 Asian financial crisis.
The measures were aimed at removing the burden on taxpayers, particularly middle-class families, he said, adding that he would also extend mortgage tax relief at a cost of HK$1.2 billion this year and next.
PHOTO: AP
He forecast a budget surplus of HK$4.1 billion in the year to next month, the first since fiscal 1998-1999, but he opposed major tax concessions given an already narrow tax base and risks ahead, among them a possible bird flu epidemic and volatility in global financial markets.
"As a government that is known for managing public finances prudently and keeping expenditure within the limits of revenues, we should not rush into deciding on substantial tax reductions," Tang said.
"I also believe that citizens should fulfil their civic responsibility by paying some tax," he said.
To widen the tax base, Tang said the government will launch a detailed public consultation later this year on the feasibility of introducing a GST.
The consultation should last nine months and Tang expects it will take three years from making a decision to introduce GST to its actual implementation.
Tang forecast a surplus of HK$5.6 billion for this year and next, rising to HK$32.6 billion in 2010-2011.
The economy expanded 7.3 percent last year following 8.6 percent in 2004, with exports of goods and services recording "remarkable" growth.
Hong Kong should achieve solid growth this year of 4-5 percent while inflation will remain moderate at about 2.3 percent.
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique