HK Finance Secretary Comments On '09 Budget

by Mary Swire, Tax-News.com, Hong Kong

27 February 2009

Hong Kong's Financial Secretary John Tsang says his second fiscal blueprint accurately reflects the city's mainstream views, adding that the government will not consider introducing unemployment assistance as it may involve changes in the tax system.

Speaking on a Budget talk show on February 26, Mr Tsang said most people had asked him to pay more attention to job creation and increasing economic diversification during the Budget consultation exercise. He said the 2009-10 Budget includes these mainstream views.

Reiterating that the 62,000 jobs and internship opportunities to be created through his proposals are in addition to the 60,000 jobs gained through the measures the Chief Executive had announced earlier, he said the move would help ease employment pressure.

Although some of the posts would be temporary, applicants would gain valuable working experience. Tsang urged job seekers not to put too much focus on the nature of jobs and the level of wages at this critical moment.

Mr Tsang said when Hong Kong sees economic recovery, more jobs would open up, and that the Government would play an active role in creating a favourable environment to promote economic development.

Tsang said Hong Kong needs to closely monitor external economic developments and their impact on the city, adding that Hong Kong's banks do not have systematic problems and therefore do not need to be 'nationalized'.

On the proposed government bond programme, he said that the move aims to promote development of the bond market. The money raised would not be used to pay for the government's operating spending.

Regarding the proposed hike in tobacco duty, Mr Tsang hoped the measure would reduce the number of smokers in Hong Kong and help ease the burden on the healthcare system. When asked whether the move would trigger more cigarette smuggling, Tsang said Customs officers would be able to curb illegal activities.

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