No room for tax cuts: Financial Secretary Henry Tang says shelving the second phase salaries tax increase would lead to a $20 billion-plus deficit in 2008-09.

Shelving the second phase salaries tax increase is not feasible, Financial Secretary Henry Tang says, adding it would lead to a deficit of more than $20 billion in the 2008-09 financial year.

Speaking on a radio talk show this morning, Mr Tang stressed that the Government will not push ahead the Goods & Services Tax in the absence of a community consensus.

The well-being of the low-income groups will also be taken into account in making any decision, he added.

Mr Tang stressed that the Government will not sell land cheaply, adding that the prices will be set according to market value.

Although revenue generated from the proposed Personalised Vehicle Registration Marks Scheme will go into the Treasury, he said, it will not affect the allocation to social welfare groups.

He said the lucky number plates' auctions will continue and the revenue generated will still go to the Lotteries Fund.

In addition, the main source of revenue of the Lotteries Fund is the Mark Six, which generates $800 million each year.