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Joseph Yau: GST may be the best means to broaden the tax base

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(新頁面: By Mickie Choi, 11th March 2014. Joseph Yau, the President of the Taxation Institute of Hong Kong (HK) suggested yesterday that Goods and Service Tax (GST) maybe the best type of tax tha…)
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在2014年3月12日 (三) 03:21所做的修訂版本

By Mickie Choi, 11th March 2014.

Joseph Yau, the President of the Taxation Institute of Hong Kong (HK) suggested yesterday that Goods and Service Tax (GST) maybe the best type of tax that being introduced in HK so as to broaden the tax base.

As John Tsang, the Financial Secretary warned that the HK might face structural budget deficit in seven years time, Yau suggested that broaden the tax base may be one of the ways to tackle the problem. Yau elaborated that since GST was based on user-pay principle, it is fair to everyone. Moreover, it is easy for government to access and estimate the revenue, it is therefore the best type of tax for HK to impose.

When being asked when is the suitable moment to introduce the tax, Yau, however, believed that the this won’t happen until 2017. He said that the taxation was a huge issue for government to handle. Nevertheless, Yau suggested it is now the right time to start discussion on the tax issue, or else it would become a political weapon in 2016 and 2017, where Legislation Council Election and Chief Executive Election take place respectively.

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