John Tsang expected to make revisions to present to lawmakers as early as Wednesday

The calls from taxpayers demanding tax rebates are being heard loud and clear, Financial Secretary John Tsang admitted Wednesday.

Apart from this issue, he pledged to look at the question about a planned infusion of cash into the Mandatory Provident Fund (MPF).

He said he will also look into the matter of so-called unclassified people who are not to benefit from any of the government's announced relief measures.

Tsang said he will come up with a revised package as quickly as possible.

Tsang attended a joint luncheon hosted by the business community Wednesday, where he mentioned relief measures he announced in the budget.

"As you know, the MPF injection plan received rather poor reception. I am giving further thoughts to revise this initiative in order to meet the concerns they have identified," Tsang told the floor.

In his budget speech, Tsang announced HK$24 billion injection into MPF accounts (HK$6,000 per capita), but people grumbled that the money will not become available to them until retirement.

He also sparked criticism when it became clear that the people who do not live public housing units, receive social security, own properties or have registered electricity meters cannot enjoy the relief measures.

Anthony Wu, chairman of Hong Kong General Chamber of Commerce, who co-hosted the luncheon, said it is very rare for the government to amend the budget.

"It is very brave of (Tsang) to revise the budget after hearing voices of the society," said Wu.

Sources said Tsang is contemplating a consolidated package covering all three issues and he may announce a revised package before meeting with pro-establishment lawmakers again, possibly on Wednesday.

"He will certainly offer greater concessions in all these three areas. His efforts will not be half-hearted (as he knows) society will not find half hearted efforts acceptable," sources said.

According to the Public Opinion Programme of the University of Hong Kong, the number of people dissatisfied with the budget has surged from 35 percent, when it was brought down on Feb 23, to 53 percent on Wednesday.

"It is a very rare phenomenon," said pollster Robert Chung, "and the government must handle people's sense of outrage with a crisis mindset."

Meanwhile, the opposition camp and civil service unions will hold a rally opposing the budget on Sunday.

Police officers intended to join to air their grievances but, after meeting with police management Tuesday, four police associations declined to join in their official capacity.

Tony Liu, chairman of Local Police Inspectors Association, quoted management as saying that policemen may violate the police standing order and be subject to discipline if they join the march.

But he said he may participate as a civil servant rather than as a policeman.

According to Wu of Hong Kong General Chamber of Commerce, a tax rebate will benefit only about 1.4 million taxpayers while the MPF injection can benefit more people.

He suggested the government consider a method of MPF injection which allows people a cash-out option to have money in their pockets.

Lawmaker Regina Ip said it is necessary to meet Tsang for a second time.

"He needs to take decisive actions," she said. "If he wants to meet us again, that means he cannot do what we ask him to do."

In her view, cash handouts to people with Hong Kong identity cards are the most practicable and will benefit the most people.

China Daily

(HK Edition 03/02/2011 page1)