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President of The Taxation Institute suggests broadening tax base to solve aging problem

出自香港新聞網 - 樹仁新傳系學生實習習作

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By Tse Chi Chung 11 March 2014


The president of The Taxation Institute of Hong Kong, Yau Yin Kwan, said that the government should broaden tax base to deal with the aging problem.

Budget of 2014-15 has just released a few weeks ago. It is estimated that there will be a structural deficit in 2021 at the earliest. Yau said if the government does not broaden the tax base, the future lives of young people will become tough because the ratio of young people to elder will soar from 1:6 to 1:2 in 2041. He also said this problem could be discussed among the society even the Chief Executive Leung Chun Ying had said that no extra category of tax will be established within his term of office.

Yau suggested that the government could consider collecting Goods and Services Tax(GST) as it bases on the “User-pay principle” which is a fairer tax payment method. But he opposed the suggestion of collecting land route arrival tax to discourage the arrival of Mainland tourists because this suggestion didn’t consider the effect on cross-broader students.

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