| Headline: Super-capitalism’s cashflow crisis Source: Euromoney Date: September 2001 Author: Kevin Rafferty Hong Kong is facing a crisis – how to fund an increasing budget deficit at a time of almost unprecedented economic downturn.
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 would yield HK$900 million a year. Other proposals include a poll tax of HK$200, to bring in HK$1 billion; a tax on mobile telephones, to raise HK$460 million; a 1% pay roll and social security tax, to fetch HK$5.6 | |||||||||||||||||||||||||||||||||||||||||