All About Hong Kong

Being able to join my friend's computer lesson is a blessing. It implies that I don't have to travel on that particular weekened. It's been 2 months since I attended my last computer lesson.

I treat it as a learning class as well as an opportunity to meet some of my "old" friends. :)

Picture taken today during break. No, they are not my hands.

They are James' who thinks they are huge.

What do you think?

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January 7, 2006 22:18 - Hong Kong Taxation - Outhope Of Taxation Relief

One of the key success factors for Hong Kong has always been her low taxation system; no matter it is the profit tax, salary tax, or the non-existence of Goods and Services Tax.

I still remember the 19.8% (which includes GST + PST) during my high school years, in Canada.

Brutally ridiculous.

If Hong Kong has to impose a GST, it will certain strike her competitive advantage over other South East Asia countries.

Mr. Tang should think clearly about this because it would harm Hong Kong's low/ non-taxation reputation which has been built up over the years.

From the SCMP:

Financial Secretary Henry Tang Ying-yen said he would seek to "share the benefits of the recovery" with taxpayers but stressed the government must "strike the right balance" to sustain the city's economic health.

Mr. Tang said he was optimistic the government could balance the budget earlier than the 2008-09 targets, given the economic recovery. But he also raised a note of caution about this year's economic outlook following two years of robust growth.

Asked whether there was room for a tax cut in his February 22 budget, Mr. Tang said: "If we have the room for it, if we have the conditions for it, then we will always try to strike that balance and share the benefits of the recovery."

Mr. Tang was speaking after taking part in a radio programme.

Hong Kong has rebounded convincingly from the Sars outbreak of 2003 and looks likely to report healthy economic growth of at least 7 per cent in 2005.

Tax income is also up, with the Inland Revenue Department expecting to reap $4 billion more in salaries and profit tax this financial year compared with 2004-05.

Mr. Tang said he was optimistic the government could balance both its operating and consolidated accounts earlier than the 2008-09 target.

The government's estimate is for a $10.5 billion deficit this financial year, although analysts believe that breakeven or even a surplus is attainable.

The consolidated accounts include earnings from investments, issuing debt, selling land and other sources, in addition to regular income such as tax revenue.

"Income from land sales fluctuates with the economy and cannot be considered as regular income," Mr. Tang said.

"After two strong years, we have to be more cautious about the economy in 2006."

Taxation Institute president Richard Chow Yeung-tuen agreed with Mr Tang's conservatism but noted that, over the longer term, the government could do more to ease the public's financial burden by widening the tax bands and increasing child allowances.

PricewaterhouseCoopers tax partner Tim Lui Tim-leung said the government might favour a one-off salaries tax rebate but said concessions should be considered for its main income source, profit tax, as a matter of fairness.

Mr Tang's budget speech is expected to address several key issues, including the feasibility of a goods and services tax.

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