1 August 2006
Questionnaire on recent government¡¦s consultation on proposed reform to broaden Hong Kong's tax base [the introduction of a Goods and Services Tax (GST)]
As you may be aware, the government has just launched a 9-month consultation on the introduction of a Goods and Services Tax in Hong Kong. GST is a multi-stage value-added tax levied on local consumption.
Hong Kong¡¦s narrow tax base has always been a major concern of the government. As stated in its consultation document, the government proposes a GST in order to secure the long-term sustainability of its revenue base and its capacity to meet public expenditure needs.
Based on government¡¦s calculation, an assumed GST rate at 5% would result in a rise in the price effect of around 3% in the short-term. To compensate those affected by the impact on their livelihood through any increased living costs, the government proposes a broad range of relief measures. Room for tax reductions is also anticipated. Details are available on the website www.taxreform.gov.hk.
In order to gauge the views of Engineers on the subject, I would like to ask you to spare a minute to answer the short questions below. Your answers will help me form a preliminary impression of the mainstream views of our fellow Engineers. Should there be further consultation conducted by the government on the subject, or should there be a need, I will definitely seek your views again.
1. Are you agreeable to the proposed introduction of GST?
2. Do you agree with the important features of the proposed GST framework?
Please return the completed questionnaire by fax to 2501 0162 on or 31August 2006.