In 2001, the Hong Kong SAR Government established a "New Broad-based Taxes" Advisory Committee, the primary objective
being to consider the suitability of implementing new types of broad-based taxes in Hong Kong to preserve Hong Kong's level of competitiveness.
In the Consultation Document issued in August 2001, the Committee suggested the introduction of a form of General Consumption Tax, similar to a Sales Tax.
The following month, the Association of Better Business and Tourism Services (BBTS) issued a position paper on "New Broad-based Taxes" sharing its views
with its Members and presenting our standpoint as to why we object strongly to the introduction of such a Sales Tax.
Our views are summarised as follows：
BBTS has no objection to the study of new broad-based taxes that could improve Hong Kong's tax system. We are willing to have our representatives work with
the Government to study possible options to increase Government revenue, other than through the introduction of a Sales Tax.
- Introducing a Sales Tax is contradictory to Government policy.
- A Sales Tax will discourage tourist spending in Hong Kong.
- Government is actively encouraging residents to spend locally.
- It is anticipated that any Sales Tax would increase operational costs of all retail, restaurant and tourism- related services.
- The popularity of Hong Kong as a "Shoppers' Paradise" would be tarnished should prices increase, resulting in immeasurable economic loss.
- The favourable "No Sales Tax" position currently in existence in Hong Kong would be undermined, thus weakening Hong Kong's regional competitive edge.
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The economic situation of Hong Kong has not yet rebounced, therefore the Hong Kong SAR Government should not consider introducing a Sales Tax at
this time, as it would place added economic strain on our Members.
In order to increase revenue, the Government should explore the feasibility of increasing existing taxes, or introducing alternative new taxes, such
as a Land Departure Tax. The Government should also consider a reduction in Government spending.
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The economic situation of Hong Kong has not yet rebounced, therefore the Hong Kong SAR Government should not consider in.tro.duc.ing a Sales Tax at
this time, as it would place added economic strain on our Members.
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As a channel for expressing views on industry-related matters, and as a representative voice on issues affecting the industry over the past year, Better
Business and Tourism Services (BBTS) has formally commented on the following issues:
- Travel Agents (Amendment) Bill 2001
- The Inspection & Open Categorisation of Food Establishments
- Review of Certain Provision of the Copyright Ordinance
- Proposed Legislative Amendments to the Smoking (Public Health) Ordinance (Cap.371)
- Licensing Control to prevent cross-contamination between food items
- The Public Health and Municipal Services (Amendment) Bill 2001
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