Hong Kong Financial Secretary Wants To Keep Things Simple

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

29 January 2003

Hong Kong's Financial Secretary, Antony Leung Kam-chung on Monday expressed his desire to solve the SAR's economic problems whilst at the same time maintaining a low and simple tax regime.

Speaking at a Foreign Correspondents' Club lunch, the Financial Secretary cautioned that: 'If we can't demonstrate our ability to address the problem within a reasonable period of time, our credit rating and even our currency would be under pressure, as foreign experiences have repeatedly demonstrated.'

This follows an announcement by Moody's Investors Service last week. The international ratings agency urged the Hong Kong government to begin reducing its growing budget deficit, but warned that given the current fragile state of the economy, the timing of any tax changes must be perfect.

According to the People's Daily news service, Mr Leung revealed that targets have been set to reduce projected government spending by HK$20 billion by 2006-07 in order to help address the deficit, but suggested that the territory's economy is actually showing signs of recovery now, particularly within the export sector.

He told those attending the FCC luncheon that looking at the broader picture will: 'help reassure ourselves that the economic future of Hong Kong does hold enormous promise'.

Recommended