HK gov't aims to share wealth with citizens: Financial Secretary

Financial Secretary Henry Tang said Saturday the Hong Kong government aims to share wealth with citizens when the fiscal situation allows it -- having regard to prudent public financial management, keeping spending within revenue limits, and Hong Kong's long-term interests.

Speaking on a live TV talk show, Tang said there are many voices calling for either a salaries tax cut or increased spending as the economy has recovered and the government's fiscal position has improved.

Tang pointed out the economic recovery came through the community's hard work and he appreciated people's aspirations for tax cuts. However, he stressed prudence is key, adding he must consider Hong Kong's long-term interests, employment and fiscal situation when devising the Budget.

On requests for a salaries-tax reduction, Tang said the tax covers four elements -- personal tax allowance, tax bands, tax rates and the standard rates. People can look at them individually and he will see if adjustments to individual elements can be made.

Noting the Chinese mainland's economic reform will bring Hong Kong many opportunities and challenges, Tang called on Hong Kong people to better understand what the challenges are and fully equip themselves to meet challenges brought by the knowledge-based economy.

When asked how to help the poor and disadvantaged, Tang noted government spending on social welfare went up 90 percent in the last decade, while overall spending rose just 30 percent.

Tang said measures to tackle intergenerational poverty, such as setting up a child development fun, are being explored. Efforts to help welfare recipients to be self-reliant through employment will also be bolstered, he added.

Turning to indirect taxes, such as duty on alcoholic beverages, Tang said wine drinking has become part of people's daily life. Noting the existing duty on wine at 80 percent is high, he said he will see if the duty level needs to be revised.

The Financial Secretary will announce his 2007-08 Budget at LegCo at 11 a.m. on Feb. 28.

Source: Xinhua