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Cutting Profits Tax may not bring huge benefits

出自香港新聞網 - 樹仁新傳系學生實習習作

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A member of the eleventh national committee of the Chinese People's Political Consultative Conference (CPPCC), Eddie Li said that he supported Leung Chun Ying to become the vice chairman of CPPCC.


There are some gossips saying CY Leung is invited to be the vice chairman of CPPCC after he resigned from being a Chief Executive. Eddie Li said,’ No matter you are support the PRC or the Hong Kong Government, it will be a huge honor for fim to be the vice chairman.’ He continued,’ You can just provide services for 7 millions people if you are a Chief Executive of Hong Kong, but you can service all Chinese if you were a member of CPPCC.’.


He took 7th Director General of the World Health Organational, Margaret Chan Fung Fu-Chun as an example, proving anyone who can have place in an international organization will be a honor of Hong Kong citizens


The new Financial Secretary Paul Chan Mo-po announced he will establish a new tax policy unit as he rolled out tax rebates and raised tax allowances on the back of an estimated HK$92.8 billion fiscal surplus.


Eddie Li said, he feel the sincerity of the government towards this tax reducing scheme, but he refused to agree the scheme can help enhancing citizens’ lives. ‘It doesn’t need to reduce the tax rate for the flavor of Hong Kong macroeconomic development. ‘He said the tax rate of Hong Kong is already low enough, he didn’t think there is any room to decrease the tax rate anymore.


He continued, the government should handle all of the loopholes related to a new policy before establishing it. He took the Profits tax as an example. He pointed out that, all of the companies in Hong Kong use their income as a base to calculate their Profits tax. ’If there is a company, it means to avoid the tax, it can separate a big companies into different smaller ones, in order to hand in less amount of tax.’ He added, the government need to deal with these problems and grey areas to make everything open and fair.


Grade: E

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