Financial Secretary John Tsang has ruled out implementing a goods and services tax for now.
Speaking during his televised panel discussion with the media tonight on his 2015-16 Budget, he said the Government must study how to broaden the tax base to create room for direct tax concessions, however, there is no plan for a goods and services tax.
He said Hong Kong’s tax base is very narrow, with only 40% of the workforce paying salaries tax, and 10% of registered corporations paying profits tax.
Goods and services taxes implemented in other jurisdictions around the world are an effective means to broaden the tax base, he said, but curbing parallel trading activities should not be a factor in considering whether to implement the tax in Hong Kong.
On the plan to start a Future Fund, he said the fund will be placed in long-term investments to achieve higher returns. The target is to use the money to maintain economic drive in times of financial difficulties.
On housing, he said over 70,000 units will be put on the market in the coming three to four years, which he hoped will stabilise prices.
In the meantime, the Government will monitor the situation and introduce more measures if the situation requires, he added.
