Sweeteners Less Sweet But It's All We Can Afford: FS

Financial Secretary Paul Chan on Thursday said the government can't afford relief measures beyond those announced in his budget, acknowledging that the “sweeteners are not as sweet” this time round.

Chan was speaking on a radio programme jointly hosted by RTHK, Commercial Radio and Metro Radio a day after he announced his budget blueprint for the next fiscal year.

Some callers complained that an increase of HK$10,000 in the child tax allowance was insufficient and that there was no additional allowance for people who support parents who don't live with them. The financial chief's HK$5,000 per person consumption voucher handout also attracted complaints, with callers pointing out it was half the sum given last year.

In response, Chan said the administration had to live within its means after recording another hefty deficit.

“After all, we have had several years of deficits and we have to be prudent. The relief measures – or so-called ‘sweeteners’ – are not as sweet. I hope people will understand that we have done everything we could,” he said.

“As for suggestions of other tax allowances or new-born cash allowance, we have looked at them. But let’s just say that while I understand why people have suggested them, they will add up to be a considerable sum,” Chan added.

Other callers said they were unhappy at higher taxes on tobacco and a levy on the Hong Kong Jockey Club's football betting income over the next five years.

“I would like to ask whether only people in power can smoke and drink? Do poor people not deserve to smoke or drink?” a Mr Ho asked, complaining about the 60 cent per stick increase in tobacco tax.

Chan said the hike was not intended to increase tax revenue but to dissuade people from smoking.

Asked by another caller why he chose to impose a levy on football betting rather than horse racing, Chan said one reason was that the Jockey Club made a much bigger gross profit on soccer bets.