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FS speaks on goods and services tax
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Following is the transcript of remarks (English portion)
by the Financial Secretary, Mr Henry Tang, at a media session after
attending a RTHK radio programme this (November 22) morning:
Reporter: Mr Tang, could you explain why a Goods and Services Tax
will not be introduced until at least 2009? Is it because the government
wants to avoid possible strong opposition from legislators? And
secondly, can you also explain what kind of tax concessions can
be expected from the poor?
Financial Secretary: First of all, there is already strong opposition
from the legislators even without any substantive part of the Goods
and Services Tax having been announced. I think the likelihood of
it being passed in the present moment without any substantive discussion
will be very limited. But I think it is important that I introduce
this subject for a general, constructive and healthy discussion
simply because it will have overriding and crucial importance for
our future generations. I believe it is my responsibility to introduce
this issue for public discussion.
Reporter: What kind of tax concessions could be expected for lower
income families?
Financial Secretary: It is very important that this tax addresses
the various challenges faced by different sectors of our society,
especially for the low-income families. We must devise a package
of compensation that will mitigate the effect of the Goods and Services
Tax on them so that it will not add to their difficulties. As far
as the middle- income earners are concerned, I think a straight
forward tax concession will be the best way forward. But we will
be introducing a substantive issue for discussion when it is time
to consult the public. There will definitely be a very long, in-depth
and comprehensive consultation.
(Please also refer to the Chinese portion of the transcript)
Ends/Monday, November 22, 2004
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