KONG (MarketWatch) -- Hong Kong Chief Executive Donald Tsang pledged to
cut corporate profit and salaries taxes Wednesday as part of a wider
goal to return wealth to the populace at time of budget surpluses.
In the first policy address of his second term in office, Tsang said
stronger-than-expected revenue enabled him to cut the salaries tax for
top earners to 15% from 16%, while the corporate profits tax would fall
to 16.5% from 17.5%. The tax cuts are to take effect in the fiscal year
beginning April 1.
Tsang said the two measures would cost the government HK$5 billion annually.
"Hong Kong's economy is back on track, registering rapid growth over the past 15 quarters," Tsang said.
"I am confident because Hong Kong people have overcome the confusion
and anxiety about their future, which was once shrouded in
uncertainty," he added, making reference to the 10-year period since
Hong Kong reverted to Chinese sovereignty in July 1997.
He added the budget
surplus for the 2007 financial year was about HK$3.5 billion ($451.06
million) higher than earlier estimates.
Tsang also said he
would waive property taxes in the last quarter of the 2008 financial
year, extending a suspension of the tax from the first two quarters.
He added the temporary waiver would cost the government HK$2.6 billion in lost revenue.
Tsang also said he needed more time to study the results of a review
into wages for security guards and cleaners before backing minimum wage
RH: MY ACQUAINTANCE, A FORMER POLICE INSPECTOR, AND HIS LAWYER FRIEND, EYEWITNESSED LEE KUAN YEW RIGGING THE 1997 CHENG SAN GRC ELECTION. READ MORE AT MY BLOG ENTITLED "I CAME, I SAW, I SOLVED IT" :
[ALSO AT THE ABOVE BLOG, LIE KUAN YEW's LIES, WRONGFUL JAILING, TORTURE AND BEATING TO DEATH OF INNOCENT POLITICAL PRISONERS]
READ ALSO MARTYN SEE's INTERVIEW WITH ME AT:http://singaporerebel.blogspot.com/
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