BUDGET GUY ELLIS Hong Kong needs to widen its tax base.

(From South China Morning Post)

On Wednesday, Hong Kong Financial Secretary Antony Leung Kam-chung will deliver his second Budget speech. Over the last few months, there has been considerable debate in the community about the detailed measures that Mr Leung may announce to tackle Hong Kong's budget deficit problem. It is now widely accepted by many in both the private and public sectors that Hong Kong's deficit problem is a structural one. Simply put, the government's revenue is insufficient to cover its expenditure.

After years of denial, the government now accepts that the problem is becoming critical and that the need for action is urgent. On the …