Mr. Tsang proposed a number of measures to enhance the competitiveness of Hong Kong.  Besides, in view of the slow growth in economy comparing to the government’s increasing spending on public policy and welfare benefits, Mr. Tsang emphasized that the government needs to contain its expenditure growth on one hand and preserve, stabilize and broaden the revenue base on the other hand. 

Mr. Tsang identified manpower, land supply and ageing population as major constraints to Hong Kong’s future development.  In order to ease the financial burden of the ageing population in Hong Kong, in the long run, broadening the tax base, e.g. introduction of sales tax, may be one of the possible ways to increase the government’s revenue.  However, Mr. Tsang considered that it is not the appropriate timing for introducing new taxes.  As hinted by Mr. Tsang earlier this month, the one-off budget relief measures this year are similar but less generous than prior years.

Content

• Economic performance and outlook
• 2014-15 budget highlights
• Tax facts