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In response to media enquiries, a government spokesman said today (August 20) that the Government welcomed public views on the proposed tax reform and measures to broaden the tax base.
"Hong Kong is a pluralistic society and we respect the views of various sectors of the community, but we are disappointed that the organiser of today's procession suggested an early termination of the current public consultation on tax reform and broadening of the tax base. We strongly believe that an open and democratic society should accept different views and opinions and welcome opportunities to discuss public policy proposals. Any community group may object to particular government proposals, but no one should seek to deprive other people of the opportunity to express their views on this important subject of tax reform," he said.
"We note there are different views and opinions in the community on this important subject and this is precisely why we have launched the current nine-month public consultation and provide ample time for the community to understand and discuss the proposals thoroughly."
The spokesman pointed out that Hong Kong's population was rapidly ageing. This implies higher spending pressures on healthcare and services for the elderly in the coming decades while there would be fewer people in the workforce generating Salaries Tax revenue. There would also be growing demand for government investment in education, manpower training and retraining to better equip our workforce to compete as the world economy is increasingly gloabalised. We also have to consider how Hong Kong's tax system should respond to the international trend of lowering profits tax and personal income tax rates so as to maintain our attractiveness to capital and talent.
"In view of the challenges ahead, we think it is prudent and responsible for the Government to initiate rational discussions on tax reform and broadening of the tax base to ensure the long-term viability of our fiscal system and future prosperity and stability," he said.
"We understand that people may have different views on GST. But the problems would not go away simply because one does not like the proposed solution. We, therefore, urge those opposing the GST to share with the community what they consider to be better alternatives to ensure that our future generations will have the necessary resources to meet the increasing demand for social services and that Hong Kong can maintain its economic prosperity and stability in the long term.กจ
Ends/Sunday, August 20, 2006
Issued at HKT 18:17
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