The Financial Services & the Treasury Bureau will set up a tax policy unit to study ways to augment the tax regime to raise Hong Kong’s competitiveness, foster development in emerging industries and attract new investment.
Briefing legislators on his 2017-18 Budget today Financial Secretary Paul Chan said Hong Kong is facing the problem of a narrow tax base and a concentration of revenue from just a few industries.
He said the tax policy unit will examine views on tax issues from a macro perspective.
He disagreed with suggestions the Budget lacks poverty-tackling measures, saying social welfare expenditure is up 70%.
He said such a long-standing problem cannot be solved in only one to two budgets.
He said he has proposed allocating more than $30 billion in short-term relief measures to help the poor share the benefits of Hong Kong's economic development.
Investing the $60 billion fiscal surplus in the city’s future is for the community’s own good, he added.