31 January 2018
The Honourable Paul Chan Mo-po, GBS, MH, JP
25/F, Central Government Offices
2 Tim Mei Avenue, Tamar
Dear Financial Secretary,
Hong Kong General Chamber of Commerce is pleased to enclose its submission containing proposals for the Government’s forthcoming Budget.
Hong Kong is one of the premier business hubs in the world. However, we must be vigilant to ensure that we remain so amid a changing global environment. Our proposals have been selected with this objective in mind.
Our huge budget surplus makes it clear that the time is ripe for a major review of our taxation policies. Hong Kong’s simple and low tax system is one of the main reasons why we are consistently ranked as one of the most competitive economies in the world. But as other economies are introducing severe tax cuts, we must be careful that our competitive margin in this area would not be narrowed.
We therefore propose that the Government should put its surplus to good use with a tax cut for a defined period of three years. This will put money back in the hands of businesses and middle class consumers, and drive Hong Kong’s continued growth and prosperity.
The Chamber also continues to argue for light touch regulation so that our local businesses, especially SMEs, are not burdened by unnecessary and out-of-date requirements. To this end, we suggest that the Government should set up a working party to review all existing and upcoming regulations to eradicate anachronistic laws and inefficient procedures.
These and other proposals are developed in the attached submission, which we hope you will find helpful. As always, we look forward to working constructively with the Government for the benefit of all Hong Kong citizens.
 The 2017-18 Budget, paragraph 41
 Ibid, paragraph 42.
 New Shanghai Regulations on RHQ http://www.shanghai.gov.cn/nw2/nw2314/nw2319/nw12344/u26aw51294.html
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