Lawmaker: keep taxes simple, look again at GST
Lawmaker Duncan Chiu on Wednesday said Hong Kong's simple, low-tax system was its key advantage, and the administration should look again at the idea of a goods and services levy if it needs to raise more money. Chiu spoke on RTHK's Hong Kong Today programme a day after the G19 group of lawmakers, of which he is a member, put its budget proposals to Financial Secretary Paul Chan. It favours taxing flats worth HK$10 million or more as well as yachts and cars, while avoiding putting up charges that affect underprivileged people. Chiu, who represents the IT sector, said his personal view was that: "The simple, low-tax regime is the most important attraction of Hong Kong. It's the fundamental of Hong Kong's success." He told RTHK's Samantha Butler: "If there's any tax category we would have to consider in future that would be some indirect tax system like GST [goods and services tax], which is also implemented in many other countries.  "We can start the study and take a public survey on this. This is my suggestion, personally." Former financial chief Henry Tang launched a consultation on a goods and services tax in 2006 as a way to broaden the SAR's tax base. However it was withdrawn in December that year after widespread opposition. Chiu said the G19 group's general view was that the administration should continue helping the needy and investing in the future, in areas such as technology. He said the group had also proposed investing in major new tourist attractions. He said he also saw scope for cuts in government spending, for example by looking again at staffing levels in some areas and examining whether digitisation processes could allow for reduced headcounts.