Members of Hong Kong's Legislative Council last week supported a motion opposing
the introduction of a Goods and Services Tax in the territory
The motion, moved by Dr Hon Yeung Sum, stated: "That this Council opposes
the introduction of a Goods and Services Tax."
Commenting on the motion last Thursday, Financial Secretary, Henry Tang told
journalists that:
"We are disappointed at the outcome. Actually the biggest difference between
the Government and the Hon Yeung Sum's motion is that the actual effect of the
motion will suffocate further discussion on broadening the tax base and a Goods
and Services Tax. I hope in this incident, that LegCo members have not misjudged
public sentiment nor have they lost a valuable chance to discuss a very important
subject in the community."
He continued:
"Actually, there was a lot of discussion today regarding various different
types of taxes. New taxes, for example capital gain tax, progressive tax or dividend
tax and indeed they have raised a number of questions as well as concern about
the GST. This is exactly why we should continue this discussion and we should
continue to consult."
"One of the most talked-about subjects is income disparity that GST might
bring. I think this is a very superficial argument and indeed it may be intentionally
misguided. Because when we launched the GST debate, together we have a large
basket of other compensation and measures to mitigate the effect on lower income
families."
"The income disparity issue is something that the Government must address
and we will address in any future tax system. We will not launch any tax system
that is not fair and that would not address this income disparity issue."