It has become a custom for the Financial Secretary, John Tsang Chun-wah, to leak a few details of his budget measures before he delivers his budget speech. This year is no exception. So far this year, it has been suggested that we can expect a salaries tax rebate, a waiver of two quarters of Government rates, and additional relief for people reliant on social security assistance. In other words: thank you but nothing very surprising. What has been particularly irritating, however, is the proposed use of Hong Kong’s tax system for social engineering purposes, in particular, raising the Stamp Duty on high-value property transactions in order to dampen the luxury house market and raising the duty on cigarettes to deter people from smoking. Such measures, whilst raising revenue for the Government, are a misuse of our tax system.
Budget Thoughts – The Misuse of Hong Kong’s Tax System
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