PRESS RELEASE

Transcript of SFST's remarks

**********************************

Following is a transcript of remarks (English portion) by the Secretary for Financial Services and the Treasury, Mr Frederick Ma, to the media after attending a radio programme this morning (July 22):

Reporter: Can you give us some reaction to the feedback on GST?

Secretary for Financial Services and the Treasury: After 1997 we have seen the volatility of government income and clearly our tax base is very narrow. As a responsible government, we need to do something and that is why we are introducing this consultation paper so that the community can have a constructive debate on whether we should have a GST (Goods and Services Tax) in Hong Kong.

(Please also refer to the Chinese portion of the transcript.)

Ends/Saturday, July 22, 2006
Issued at HKT 12:49

NNNN