Tsang Launches Hong Kong Leadership Bid On Low-Tax Platform

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

03 June 2005

China's State Council has approved Acting Chief Executive Donald Tsang's request to resign from his post as Chief Secretary for Administration, clearing the way for Mr Tsang to run in the upcoming election of a new Chief Executive.

Formally launching his campaign at a press conference yesterday, Tsang stated that he is keen to maintain Hong Kong as a "simple low-tax regime" and hinted that he would be prepared to cut taxes if economic conditions permitted.

Tsang also promised to review the existing structure of the executive branch with a view to improving efficiency, and plans to review and prioritise policy directives and government projects initiated during the last three years.

However, to ensure stability in the government, Tsang will invite all members of the present administration to complete their terms in office.

The Chief Executive post became vacant earlier this year when the previous incumbent, Tung Chee-hwa, resigned due to ill health. Tung was midway through his second term, and his departure sparked a constitutional crisis centred upon whether the next CE should serve out the remaining two years of Tung's term, the option favoured by Beijing, or a full five year mandate.

Tsang must secure the backing of at least 100 of the 800-strong election committee to win formal nomination. However, he is likely to run unopposed in the July 10 election.

In the meantime, Financial Secretary Henry Tang has stepped in as acting chief executive.

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