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Policies and Principles of General Revenue of the Government under the Basic Law and the Public Finance Ordinance (Cap.2)

Basic Law

Article 7:

The land and natural resources within the Hong Kong Special Administrative Region shall be State property. The Government of the Hong Kong Special Administrative Region shall be responsible for their management, use and development and for their lease or grant to individuals, legal persons or organizations for use or development. The revenues derived therefrom shall be exclusively at the disposal of the government of the Region.

Article 106:

The Hong Kong Special Administrative Region shall have independent finances. 

The Hong Kong Special Administrative Region shall use its financial revenues exclusively for its own purposes, and they shall not be handed over to the Central People's Government. 

The Central People's Government shall not levy taxes in the Hong Kong Special Administrative Region.

Article 107:

The Hong Kong Special Administrative Region shall follow the principle of keeping the expenditure within the limits of revenues in drawing up its budget, and strive to achieve a fiscal balance, avoid deficits and keep the budget commensurate with the growth rate of its gross domestic product.

Article 108:

The Hong Kong Special Administrative Region shall practise an independent taxation system.

The Hong Kong Special Administrative Region shall, taking the low tax policy previously pursued in Hong Kong as reference, enact laws on its own concerning types of taxes, tax rates, tax reductions, allowances and exemptions, and other matters of taxation.

Public Finance Ordinance (Cap.2)

Section 3:

  1. Except where otherwise provided by or under this Ordinance or any other enactment any moneys raised or received for the purposes of the Government shall form part of the general revenue.
  2. Any refund or drawback may be made from the general revenue in accordance with regulations made under section 11.
  3. For the avoidance of doubt it is hereby declared that the reference in subsection (1) to moneys raised or received for the purposes of the Government does not include moneys held on trust.

Section 4:

No expenditure shall be charged on the general revenue except as provided by or under this Ordinance or any other enactment.

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