Hong Kong chief outlines ambitious plan

HONG KONG, Oct. 10 (UPI) -- Hong Kong Chief Executive Donald Tsang announced a new five-year program Wednesday to include 12 years of free education and tax relief.

Tsang, who won re-election in March as head of the Hong Kong Special Administrative Region which keep its free market autonomy under China's "one country, two systems," outlined several plans that will also cover infrastructure projects and environment protection, Xinhua news agency reported.

His plan envisages the creation of 250,000 jobs, Xinhua said.

In his tax measure, Tsang announced a $1 billion package in which the standard rate of salaries tax would be lowered to 15 percent and the profits tax cut by 1 percentage point to 16.5 percent beginning in 2008-09 fiscal year.

The education plan is to cover children in the low-income category, who will receive 12 years of free schooling.

"I am confident because Hong Kong's economy is back on track, registering rapid growth over the past 15 quarters," Tsang said.

Tsang pledged his government would reinforce the city's position as a global financial center through diversified financial market measures, the report said. Those will include strengthening cooperation with the Mainland and developing an Islamic bond market in the city.