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Publications and Press Releases :
Press Release
: News Archives
Government welcomes discussions on how to broaden
tax base
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In response to media enquiries,
a Government spokesman said today (August 23) that the Government
noted the community's concerns about the proposed Goods and Services
Tax (GST).
"Earlier studies have
indicated that GST is a good option to broaden Hong Kong's tax base
and maintain our competitiveness," he said.
"The objective of the
current public consultation on tax reform is to identify the best
option to broaden our tax base and ensure our future prosperity
and stability. We welcome opportunities to work together with various
sectors of the community in identifying the best option for broadening
our tax base and are looking forward to substantive and thorough
discussions on this important subject during the consultation period."
The spokesman pointed out that as
a result of our ageing population, the percentage of people aged
65 or above would increase to 25% in 2030 from the present 12%.
Health and social welfare costs associated with the ageing population
would increase, while the number of Salaries Tax payers would decrease.
There would also be a growing demand
for government investment in education, manpower training and retraining
due to the ongoing economic restructuring. In response to these
structural challenges, we have to reform our current tax system
to broaden the tax base and ensure that we will have the resources
to provide these necessary services in response to future community
needs.
Ends/Wednesday, August 23, 2006
Issued at HKT 18:42
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