Financial Secretary Paul Chan on Sunday said he won't make any rash decision to raise taxes, after a recent blog post sparked speculation that he was planning increases.

Chan had noted that some foreign countries are considering tax hikes.

But he told Commercial Radio that such a move in Hong Kong would first have to be discussed in society.

"It's too early to say. We have to take stock of the situation and society needs to mull it over and discuss it," he said

"We are a small economy and a relatively simple tax system, and our tax revenue will fluctuate according to the economic situation. The most important thing is we are generally balanced in an economic cycle."

Chan added that the government would need to take into account the impact of tax increases on Hong Kong's competitiveness, as well as international developments in tax policies.

On his blog, meanwhile, the finance minister said Hong Kong is facing challenges regarding exports, and this is why the GDP growth forecast for this year has been lowered to 3.2 percent.

Chan said the authorities will strive to attract investment, adding that in the first 10 months of the year, they helped more than 330 enterprises from the mainland and overseas start or expand their operations in the SAR.