However, in the light of the city's projected HK$67.9 billion budget deficit and in line with recent reports, Lo also indicated that there is a strong possibility that the general tax base will have to be broadened, and tax exemptions limited in order to increase the government's revenue stream.

One likely route to achieving this would be bringing more of Hong Kong's 3.2 million workers into the taxation net. In the 2002/2003 fiscal year, only 1.2 million workers were required to pay income tax. Such a move would likely mean reducing the threshold at which income tax becomes payable, which at present stands at HK$100,000 ($22,385).

Ms Lo also confirmed that the government was looking into the possibility of levying a sales tax, although she suggested that this was unlikely to be properly considered until the economy has emerged from its current malaise. Besides, Tang hinself has already announced that there will be no new fiscal measures put in place until after next year's budget.