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Hong Kong Drops GST
Posted by Economics Corner
on
5:09 AM
Hong Kong enjoys low rates of both personal and corporate taxation. Concerned at the territory's narrow tax base and the government's over-dependence on tax revenue from property transactions, the government is consulting the public on the proposed introduction of a Goods and Services Tax (GST). Initial popular reaction has been largely unfavourable, primarily because of concerns that it will impose an undue burden on the poorer members of society, and may also harm Hong Kong's attractiveness as a tourist destination.
source: Extract from http://en.wikipedia.org/wiki/Hong_Kong
*In a surprising about turn, the Hong Kong government announced on 5 Dec 2006 that it will abandon plans for a goods and services tax in the face of widespread public hostility to the idea.
1. Name the four types of taxes mentioned in the above source and classify them under direct or indirect tax.
2. What are the demerits of the Goods and Services tax as mentioned in the passage?
3. What other demerits do the Goods and Services tax have other than those mentioned in the extract?
4. Why do you think the Hong Kong Government wanted to introduce the goods and services tax?
source: Extract from http://en.wikipedia.org/wiki/Hong_Kong
*In a surprising about turn, the Hong Kong government announced on 5 Dec 2006 that it will abandon plans for a goods and services tax in the face of widespread public hostility to the idea.
1. Name the four types of taxes mentioned in the above source and classify them under direct or indirect tax.
2. What are the demerits of the Goods and Services tax as mentioned in the passage?
3. What other demerits do the Goods and Services tax have other than those mentioned in the extract?
4. Why do you think the Hong Kong Government wanted to introduce the goods and services tax?
