Hong Kong Legislators Meet To Discuss Tax Solutions

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

15 November 2002

Many and varied suggestions for reducing Hong Kong's burgeoning budget deficit were raised at a meeting between Financial Secretary, Antony Leung Kam-chung and lawmakers from several of Hong Kong's political parties, held on Wednesday to canvas ideas for the 2003-04 budget.

According to a report in the Hong Kong Standard on Thursday, representing the Frontier Party, Emily Lau and Cyd Ho suggested tax increases to boost revenue, proposing that:

'The government could introduce a progressive profit tax, or study the feasibility of adopting a double tax system which would tax local residents who worked or earned income from outside the SAR,' Ms Lau additionally proposed that the authorities conduct a review of salary tax levels.

Independent legislator Audrey Eu, meanwhile, recommended that an environmental protection tax and a border tax should be introduced, and that the profits tax should be increased by 1% to 17%. However, she stated her opposition to the possibility of further civil service tax cuts.

The New Century Forum supported Ms Eu on the need for a 17% profits tax, but added that this should only be levied on businesses earning more than HK$10 million in profit. According to the HK Standard, the New Century representatives also recommended that income tax allowances be lowered in line with inflation, and that a HK$500 monthly job tax be levied on expatriate workers.

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