35.
In my next Budget, subject to the constraints I have just explained, I can now confirm that I plan to increase salaries tax allowances substantially. In addition, we shall carry out a review of tax bands. Whilst I obviously cannot be too specific at this stage, I would envisage the benefit (and incidentally the cost) of this improvement in the bands as being at least as great as that involved in increasing the tax allowances. The overall aim of these improvements will be to substantially lessen the tax liability of the sandwich class.
I have already made it clear that I do not believe that taxation is the prime concern of the sandwich class. I am convinced that their major anxiety is the high cost of housing. I made this issue a principal theme of my maiden speech in this Council last November. Affordable housing remains a priority item on my agenda. The Secretary for Planning, Environment and Lands has outlined our initial thinking. I can confirm it is our intention to produce recommendations on possible ways forward within six months. But clearly, our ability to fund any such recommendations would be adversely affected if any of the revenue raising measures in this Budget were not to be passed.
36. Let me repeat my earlier assurances to Members on working closely with them in the Budget exercise. I believe that we must continue to develop arrangements for consulting Members on the Budget.
37. I trust I have covered all of the major points raised by Members. I have no doubt that we share a common concern to ensure that Hong Kong's public finances are stable and well managed. This means careful planning to balance the competing priorities in the interests of the community as a whole. I hope that I have been able to give Members the explanations and assurances they have sought and that they will now feel able to give the Budget their full support.
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