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Survey: more than half want tax cuts
By Joseph Li (China Daily)
Updated: 2005-03-16 09:38

More than half of Hong Kong people believe the city should cut taxes, according to a survey by the Democratic Alliance for Betterment of Hong Kong (DAB).

The telephone survey polled 676 people from March 8 to 14 on their expectations of Financial Secretary Henry Tang's 2005-06 Budget, which will be delivered today.

Fifty-one per cent of the polled called for a tax reduction, while 34 per cent said the government should increase spending to stimulate the economy.

And 48 per cent said they are optimistic about the economic prospect,

Though almost all people in favour of a tax cut said salaries tax should be adjusted down, they did not agree on whether the tax rates should be reverted to the 2002-03 or 2003-04 level.

Also, 58 per cent of the polled said that the government should increase child allowance to address the low birth rate problem.

"Since the government's financial position has greatly improved, people are eager to know how they would benefit from the economic growth," DAB legislator Chan Kam-lam said yesterday.

"The above concessions would cost about HK$6-7 billion, but this will be adequately offset by a predicted 4.5 per cent economic growth next year," said Chan.

"Since the government is able to ease the budget deficit earlier than planned, it should use its resources appropriately to ease the burden of the lower class."

Chan also noted that 53 per cent of respondents are opposed to the introduction of a goods and services tax (GST), fearing it would deal a blow to the retail, catering, transportation sectors and discourage people from spending.

"The government will not gain a lot from the GST, because the administrative cost is very high," he said. "Again, if too many exemptions are offered, it will complicate our simple and low tax regime."

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