Earlier this month, the Financial Secretary, Mr. Tong proposed to set up Goods and Service Tax (GST) in Hong Kong. Although no timetable has been enforced, the fear of GST is definite. Social debates are getting intense; voices for and against the GST are desperately solid.Hong Kong government needs a more stable money-sucking mechanism from her citizens. By having a GST system in place, many current non-tax payers e.g. self-employed, will be exposed to the inevitable tax net and pay their dues finally.
I think it's fair. However, it will surely discourage Hong Kong tourism, which Mr. Tong has not discussed explicitly in his proposal.
Do the benefits of GST outweigh its costs? I don't know, but I am sure I will be watching my dollars and cents when GST is deployed.
