Advisory Committee on New Broad-based Taxes appointed

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The Government today (June 2) announced the appointment of an Advisory Committee on New Broad-based Taxes, to be chaired by Mr Moses Cheng, a leading solicitor.

In his 2000-01 Budget Speech, the Financial Secretary, Mr Donald Tsang, announced the establishment of the Advisory Committee to advise on what types of broad-based taxes may be suitable for Hong Kong should there be a need to introduce such a tax, having regard to the overriding principle of maintaining a low and simple taxation regime and preserving Hong Kong's competitiveness.

"We are very grateful to Mr Cheng for taking up this very important assignment which will impact on the long term fiscal health of Hong Kong. Given his professional expertise and his vast experience in public service, I am confident that the Advisory Committee under his leadership will be able to give valuable advice to the Government in considering the strategic issues involved," said Mr Tsang.

The Government also announced the formation of a Task Force to Review Public Finances, headed by the Secretary for the Treasury, Miss Denise Yue, and comprising representatives of the Finance Bureau, Inland Revenue Department and the Economic Analysis Division of the Financial Services Bureau. It is responsible for examining in detail whether the Government's projected operating deficits up to 2002-03 are cyclical or structural in nature; whether the existing tax base, types of tax, tax net and tax rates should be changed, and, if so, what the changes should be.

Welcoming the establishment of the Advisory Committee and the Task Force, Mr Tsang said that the Government would approach the subject of broadening the tax base very carefully.

"Any proposed new taxes would need to meet the criteria of being revenue productive on a recurrent basis, with revenue productivity largely immune to economic cycles and the impact of e-commence, cost effective to administer, simple to comply with and, of course, equitable," he said.

The Advisory Committee and the Task Force are expected to complete their studies and submit a report to the Financial Secretary by the end of 2001.

The full membership list of the Advisory Committee on New Broad-based Taxes is as follows:-

* Chairman:



  Moses CHENG Mo-chi

  Senior Partner,

  P C Woo & Co.



* Members (16 in total):



  Marshall H Byres

  Chief Operating Officer,

  Ernst & Young



  Tim T L Lui

  Senior Tax Partner,

  PriceWaterhouseCoopers



  Michael Olesnicky

  Solicitor,

  Baker & McKenzie



  Lee Wong Pui-ling, Angelina

  Partner,

  Woo, Kwan, Lee & Lo



  Professor Cheng Kwok-hon

  Department Head of Economics,

  Hong Kong University of Science & Technology



  Huang Shaoming

  Economist

  Economic Research Division

  Hong Kong-Macau Regional Office

  Bank of China



  Professor Nelson Chow Wing-sun

  Chair Professor,

  Department of Social Work and Social Administration

  University of Hong Kong



  Michael Tien Puk-sun

  Chairman,

  G2000 (Group)



  Lui Wai-yu, Paddy

  Executive Director

  K Wah International Holdings Limited 



  Roger Luk Koon-hoo

  Managing Director & Deputy Chief Executive,

  Hang Seng Bank Limited



  Wong Ying-wai, Wilfred

  Managing Director

  Henderson China Holdings Ltd



  Dr Tsui Fuk-sun

  - Dental Practitioner

  - Barrister-at-law



  Ting Yuk-chee, Christina

  - Chairman, Eastern District Council

  - Principal Victoria Kindergarten



  Secretary for the Treasury



  Commissioner of Inland Revenue 



  Government Economist

End/Friday, June 2, 2000

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