Hong Kong is facing a crisis - how to fund an increasing budget
deficit at a time of almost unprecedented economic downturn.
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Shenzhen: might lure more shoppers if
Hong Kong
levies a sales tax |
Unemployment, already high, is predicted to reach new
records, economic growth forecasts are falling by the month, and
none of the magic bullets that served in the past, such as
windfalls from high land prices or exports of manufactures, is in
the portfolio of measures available to solve the problem.
Now a high-powered government committee has caused controversy by
proposing that it is time to consider new taxes. In particular, it
suggests a 3% sales or consumption tax. For good measure the
committee - the advisory committee on new broad-based taxes - adds
several other taxation measures that might be considered. These
include a departure tax of HK$18 (US$2.30) on the millions of
people crossing the land border to mainland China. That...
