Political situation
Written by: Lin Jian
2021-01-18 11:28
Last update date: 2021-01-18 11:29
The "Budget" will be released next month. The Pakatan Rakyat met with Financial Secretary Chen Maobo last week to submit proposals, including the launch of "anti-epidemic development bonds" and the suspension of MPF supply for six months.
According to Pakatan Harapan President and Legislative Council Member Lu Weiguo on a program in Hong Kong and Taiwan, under the current economic conditions, tax increases will not be accepted. The government should issue bonds when there is still a lot of hot money in the international market to collect funds to fight the epidemic and recover the economy.
He said that Chen Maobo had the patience to listen to the recommendations of the Pakatan Rakyat and showed interest.
The Pakatan Harapan suggested earlier that the government should allow citizens to suspend MPF contributions for 6 months, extend the employment insurance scheme for 3 to 6 months, and withdraw the “hot tricks” for residential buildings, and expand the “hot tricks” to more than 10 million yuan. For residential properties, moderately relax the residential mortgage ratio to solve the problem of owners' capital flow.
(Photo by Peng Zhuowei)
Lu Weiguo said that the government has spent more than 300 billion yuan in relief in the past year and its fiscal reserves have been greatly reduced. The Pakatan Harapan Government also does not support the current tax increase. Therefore, he believes that the government can launch a "anti-epidemic development bond" to raise funds to support the economy. It points out that debt issuance is a good way to collect funds from the society in the world and it is worth considering. Moreover, there is still a lot of hot money in the international market, and the public hides a lot of cash, as long as the government provides attractive interest.
The funds obtained are mainly used to directly support the economy and fight the epidemic. The Pakatan Rakyat will not directly recommend the specific amount, which is determined by the government.
Lu Weiguo also pointed out that the suspension of MPF contributions can temporarily free up a sum of money for employees, which may be a thousand or a few hundred; for employers, it can also temporarily improve cash flow.
They also suggested that Treasurer launch emergency unemployment assistance at 8,000 yuan per month for six months. In addition, the government should also set up a youth professional development fund to assist young people who have difficulties in finding employment.
Lu Weiguo pointed out that although Chen Maobo did not clearly express what policy he wanted to promote, he was patient to listen to opinions and showed interest.
Chen Maobo.
(Profile picture)
Regarding the issue of broadening the tax base, Liu Yeqiang, vice chairman of Pakatan Rakyat and Chairman of Heung Yee Kuk, proposed earlier that the red wine tax should be re-introduced and the public should be allowed to bet on NBA basketball games, so as to broaden the scope of sports betting tax and open up revenue for the government.
Lu Weiguo pointed out that broadening the tax base may affect Hong Kong's long-term tax base system. It does not mean that it should remain unchanged, but the top priority now is how to overcome short-term difficulties. Other long-term tax issues need to be carefully discussed.
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