|
The Government has reported that they have so far received about 2,200 written submissions and attended 260 meetings and seminars since the launch of the consultation document on the tax reform in Hong Kong entitled "Broadening the Tax Base, Ensuring our Future Prosperity: What's the Best Option for Hong Kong" on 18 July 2006. Based on the response, the Government believes that the public has two very clear but different views. Firstly, the majority accept that the tax base is narrow and agree that this problem has to be addressed. Secondly, that the GST is not an appropriate option to solve the tax base problem.
In light of this, the Government issued an Interim Report on the public consultation on 5 December 2006 accepting that at this point in time there is insufficient public support nor are the conditions right for the introduction of GST. Hence, for the remaining part of the consultation which will end on 31 March 2007, they will not be advocating GST. However, they urge the public to provide their views on the other viable options to broaden the tax base as outlined in the 2002 Report prepared by the Advisory Committee on New Broad-based Taxes. These options include:
- Reduction in personal allowances and concessionary deductions under salaries tax
- Increase rates on tenements
- Capital gains tax
- Taxes on interest and dividends
- Tax worldwide income of businesses and individuals
- Land and sea departure tax
- Payroll and social security taxes
- Poll tax
- Green taxes
|
