Hong Kong Secretary for Financial Services and the Treasury Frederick Ma anticipated Saturday the Hong Kong Special Administrative Region (HKSAR) government's financial situation will be better than expected, as Hong Kong's economy continues to expand.

Speaking on a radio talk show, Ma said the booming stock market coupled with good land-sale results have boosted the government's total revenues.

He said, however, this situation could change if the economy suddenly faces a downturn.

Although the HKSAR government still feels that the goods and services tax is the best way to broaden the tax base, it will not advocate the proposal as the only option in solving the narrow tax base problem as more than 60 percent of people are against it, he said.

Ma said the HKSAR government does not foresee a fiscal problem in the next three to five years, but the narrow tax base still must be addressed.

He said the government has publicized the other options recommended in the 2002 tax-reform report and encouraged people to continue to express their views in the remaining consultation time.

Source: Xinhua