HK Launches Consultation on New Broad-based TaxesThe Advisory Committee on New Broad-based Taxes of Hong Kong Monday issued a consultation document to seek public views on what types of broad-based taxes may be suitable for Hong Kong.Entitled "A Broader-Based Tax System for Hong Kong?", the consultation document sets out 13 options to broaden the tax base. The options fall into two groups - those that would increase the revenue productivity of existing taxes and those relating to introduction of new taxes. The former includes raising the rates of salaries tax, profits tax and stamp duty on property as well as reducing allowances and deductions under salaries tax. Possible new taxes include capital gains tax, tax on interest, on dividends and worldwide income, a land and sea departures tax, payroll and social security taxes, poll tax, a general consumption tax and tax on mobile telephones and signboards. Speaking at a press conference to launch the two-month public consultation exercise, Moses Cheng, chairman of the advisory committee, stressed that eventual implementation of any tax proposals will be the prerogative of government. "I have no doubt that the government will take into account all important considerations before making a final decision on issues such as detailed design and timing of implementation," he added. Established in June 2000, the advisory committee has surveyed the practices in other developed jurisdictions, and considered the relevant benchmarks for good tax systems against which it evaluated the system in Hong Kong. Members of the committee comprise taxation experts, accountancy and legal professionals, academics, consumer representatives, and business and community leaders. |
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