Financial Secretary Paul Chan says the Government is committed to aiding those in need while maintaining strict fiscal discipline.
Taking public questions on his 2017-18 Budget on a radio show today, Mr Chan said he chose to spend the Government’s fiscal surplus on the community and investment for the future instead of topping up the Future Fund.
He said the Government strives to develop the economy, improve people’s livelihood, invest in a better working environment, and care for and share wealth with the public.
Given the current level of fiscal reserves, he said there is no rush to put the surplus into the Future Fund, which the Monetary Authority has been making investments on.
Elaborating on tax relief measures, Mr Chan said those in the lower-tier of the middle class should benefit from the proposals to widen the salaries tax marginal bands.
He also said they will benefit from the extension of the entitlement period for the home loan interest tax deduction from 15 to 20 years.
The Financial Secretary added the tax reduction proposals are appropriate as they can help relieve pressure on the middle class, but he does not believe in giving out money across-the-board. Instead, the Government will aid the needy.
Addressing some callers’ concern about the scrapping of the First Registration Tax Waiver for private electric vehicles, Mr Chan said he made the decision after considering road traffic and the growth rate of private cars.
Likewise, he did not propose waiving electricity fees out of environmental concern, as he does not want to encourage people to waste electricity.
On the property market, Mr Chan said the present arrangement to sell Government land through tenders ensures fair competition, and is more appropriate than land auctions as the latter makes it easier for bid rigging.
The administration will closely monitor the property market but has no timetable to withdraw the measures to curb speculation, he added.
