what is the views about GST in HK??
What is the views about GST in HK?
- MaverickLv 71 decade agoFavorite Answer
The background of Goods and Services Tax (GST) was to broaden the tax base. It implied that all persons living in Hong Kong will be subject to a levy by the Government and that all business will be the collecting agent of tax revenue for the Government. According to the recent announcement by the Government, over one million people fell into the poverty gap. The rise of imported goods price following the fall of the US Dollars arose in the fear that Government Revenue may not catch up with the rising cost of social benefits and medical needs, and more important, the increase of civil servants payroll.
The question therefore is whether we should launch the GST but whether there are other ways of increasing Government Revenue? This should be referred to the exemption of profits tax for foreign investors back to early 2006. By that time, the market turnover was about $20 billion a day. Now we are talking about $160 billion a day. The high inflow of hot monies flooded into the capital market and PE of the stocks rose to an unreasonable level. The speculators are gaining at no tax, and at the expense of the HK citizens, because we have the mandatory provident fund, we are bound to invest. We import goods and the rise of poverty gap meant we have to pay high cost because you invite speculators.
If they cannot tax the speculators, I do not think there should be any chance of GST, because it is neither fair nor equitable.
- 1 decade ago