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Hong Kong Facing Legal Action Over Maid Tax

by Mary Swire, Tax-News.com, Hong Kong

03 April 2003

The government of the Philippines has expressed its support for the legal action being taken by a group of Hong Kong based Filipino domestic workers who will suffer as a result of a HK$400 per month tax on their employers.

It is thought that the tax will almost certainly be passed on to the domestic workers in the form of a wage cut, and human rights lawyers from both Hong Kong and the United Kingdom are preparing a case against the tax, due to be implemented on October 1, on constitutional grounds.

Filipino President Gloria Arroyo has branded the tax discriminatory, and has imposed a three week moratorium on the employment of maids from the Philippines in Hong Kong in protest.

The tax has attracted much criticism, not least because it targets one of the poorest sectors of Hong Kong's employment base. Oxfam attacked the budget measure earlier in the year telling the Hong Kong Times it was "unjust for the government to ask foreign domestic helpers struggling to make ends meet to bear the pain of Hong Kong's economic woes."

The action by the Filipino maids is also supported by Indonesian and Thai domestic workers.

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