Hong Kong Residents to Prepare for Tax Hike

The Financial Secretary, Paul Chan Mo-Po said yesterday that the people of Hong Kong will be bearing the extra tax load as the previous expansionary fiscal policy has led to the reserve plummeted to $8 billion. He said, "tightening of the fiscal policy is unavoidable and necessary". In preparation for his budget to be delivered next month, he reiterated on his blog that HK saw a deficit of $10 billion this year.

As a result of this, the government will slightly reduce the relief measures that pose a load on the fiscal policy to prevent a further slash in fiscal expenditures but vowed not to drop all the relief measures at once. Also, he added that the tax increase will help to reduce the hardship of the vulnerable people in the city and that people should understand and support the government's motives.

In addition to the recent confrontations on a huge deficit in the government fiscal reserve, Regina Ip of the executive council who is also a Chairperson of the New People's Party speaking to commercial radio, says another round of consumption vouchers will have no positive effect on the economy as her party also urged the government to raise the Jockey Club football betting duty. She added that this will boost government income and be beneficial to society.