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Hong Kong taxation system will not be broadening in short term

出自香港新聞網 - 樹仁新傳系學生實習習作

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(You seem to have mixed up the reviewing date and the implementing date. Yau emphasizes that now is the time to start reviewing the feasibility of imposing new tax because the process usually takes several years and Hong Kong is unlikely to debate such political sensitive matter before 2017 when it is election time.)


HONG KONG| TUE Mar 11, 2013 17:39 (UTC)

By Ronald Chung Long Yin 115102


“Hong Kong taxation system will not be broadening in short term. The quickest date to start of reviewing will have to wait until 2017.” said YAU, Joseph, the President of The Taxation Institute of Hong Kong.


YAU said taxation system have to be reviewed since Hong Kong may suffer from budget depict in 2019. However, YAU believe the government will put the political reform in priority and the taxation reveal project will leave to 2017. He said that the government should not simply imitate the taxation from fellow countries like Singapore or Thailand, but have to research on the entire society and local public.


YAU said it is urgent to broaden the tax base in Hong Kong. Since the report of the Taxation Institute pointed out the narrow tax base has harmful effect to the income stability of the government, YAU believed that it is necessary to begin collecting the services tax, consumption tax and departure tax. In additional, He said the government should not only emphasis collecting departure tax from Mainland Chinese tourists only as taken into account of tax fairness. Moreover, YAU believed that the taxation policy about enterprises, which the companies have to pay income tax only if the income is from Hong Kong, have to be revised in the future.

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