35
The Government of the Hong Kong SAR shall, over a
period of five successive fiscal years tak en as a whole
year and the following fou r
(i.e. the current fiscal
forecast years), maintain
a
basic
budgetary revenues and expenditure.
balance between total
In principle, the rate of increase of the
bu dgetary expenditure of
of the Government of the Hong
the Hong Kong
SAR shall not, over а period of five successive fiscal
years, exceed that of the gross domestic product during the
sa me period.
Article 107
SAR shall practise an independent
The Hong Kong SAR
taxation system.
In principle, the Hong Kong SAR shall practise a
low taxation system.
The types of taxes, tax rates, tax exemptions and
other tax matters in the Hong Kong SAR shall be prescribed
by law.
Article 108
The Government of the Hong Kong SAR shall create
the appropriate economic and legal conditions for the
maintenance of the status of the Hong Kong SAR as an
international financial centre.
Article 109
The monetary and financial
Kong SAR shall be governed by law.
systems of the Hong
The Government of the Hong Kong SAR shall decide
financial policies, shall
on its ow n it s monetary and
safeguard the free operation of financial business and financial markets and shall regulate and supervise them in
accordance with law.