Views: Pros and Cons Topic Map Slideshow

Tools:  Essay Planner Presentation Planner Printable Version                    Remove from My Favorites
Category: Society & Politics
Tags: sales tax, Hong Kong
Background information: http://www.taxreform.gov.hk
 -25.34% -25.34%

  Support:
 -25.34%
Points:
A sales tax should be implemented in Hong Kong  
  • but: instead of increasing government revenue, introducing sales tax may affect Hong Kong's economy in the long run  +48.98%

    • because: introducing sales tax will significantly affect the retail business in Hong Kong, hence tourism  +65%

      • because: introducing sales tax in fact encourages people to spend outside Hong Kong, especially to go back to the Mainland (Wen Wei Po (2006) ) +71.67%

    • because: but this would add extra, unpaid administrative hours to the already long hours worked by people in the retail industry.  +32.26%

  • but: introducing sales tax will widen the already extreme disparity between the poor and the rich in Hong Kong (Wen Wei Po (2006) ) +48.34%

  • but: introducing sales tax will increase the pressure on the already overloaded public health system  +38.34%

    • because: introducing sales tax will increase expense of private hospital and clinic hence service charge (~8%), and more people will turn back to public hospitals (Hong Kong Economic Times (2006) ) +51.67%

  • but: salaries tax is very complicated, it will disrupt the simple tax system of Hong Kong  (Wikipedia (2019)) +20%

  • but: sales tax is regressive in nature  +13.75%

    • because: low income people tend to spend a greater percentage of their income in taxable sales than higher income people  +70.83%

      • because: everyone is charged at the same rate in purchasing the same good  +83.33%

    • but: the effective tax rate is in fact progressive on consumption  (Wikipedia (2019)) +39.17%

      • because: high income people consume more  +58.33%

  • but: (co) regressive tax is unfair  +8.29%

    • but: everyone should be treated equally under tax law regardless of their income or wealth  +58.33%

    • because: a regressive tax seems to punish the poor for "being poor"  (Wikipedia (2019)) +8.13%

      • because: a relatively higher burden is levied on those least able to bear the burden  (Wikipedia (2019)) +42.5%

      • but: a regressive tax is therefore functions as a incentive for being hardworking and productive  +16.67%

  • because: implementing sales tax increases government revenue  -4.59%

    • but: the government states that increasing revenue is not the aim of GST in the first five years  (Wikipedia (2019)) +0.84%

      • but: the government will use revenue to administer the tax, so the public will be charged for a useless tax  +58.33%

    • because: implementing sales tax broadens the tax base of the government  -8.33%

      • but: there exist viable alternatives for broadening the tax base  +8.33%

        • because: a tax on luxury goods would result in increased revenue without affecting the poor (Wikipedia contributors (2007) ) +19.08%

          • but: it is difficult to define ‘luxury goods’ (www.taxreform.gov.hk) +46.67%

            • but: not difficult to define, for example, luxury goods could be those that cost over one month's wage for an average HK employee  

          • but: As this tax would apply to ‘luxury goods’ only, businesses or persons being affected would consider such a tax unfair. (www.taxreform.gov.hk) +6.67%

            • but: most people who would suffer under any new tax would complain  +26.67%

            • but: as the price of luxury goods rises they become more exclusive, and thus more desirable  (Wikipedia (2019)) +21.67%

            • but: less complaints than GST because smaller number of people affected  +10%

            • because: luxury goods buyers tend to be richer and have more influence on the government  +5%

              • but: public affected by GST may protest on the streets and influence the government, and there have already been small protests  (Wikipedia (2019)) +23.33%

          • but: Prices of taxable luxury goods may rise and this may have adverse impact on tourism (www.taxreform.gov.hk) +4.17%

            • but: the government predicted GST would also have a negative impact on tourism, and proposed a Tourist Refund Scheme, so no difference from luxury goods tax  (Wikipedia (2019)) +60%

          • but: Prices of taxable luxury goods may rise and this may have adverse impact on the retail industry (www.taxreform.gov.hk) -7.5%

            • but: GST would raise the prices of all goods, which would have a greater adverse impact on the retail industry  +66.67%

          • but: consumption of luxury goods during economic downturns would fall significantly, so a luxury goods tax may not be able to stabilize revenue (www.taxreform.gov.hk) -15.83%

            • but: GST would affect the poor in an economic downturn, but a luxury goods tax would affect them less  +58.33%

            • but: consumption of all goods, not just luxuries, falls in an economic downturn, so revenues from GST would fall too  +58.33%

        • because: our government can instead reduce the personal allowances under salaries tax  +15.63%

          • because: this would draw wage earners currently paying no salaries tax into the tax net  +58.33%

          • but: reducing personal tax allowances will make Hong Kong less competitive in retaining and attracting talent  +41.67%

          • but: reducing personal allowances under salaries tax cannot produce a significant revenue  +40%

            • because: the government has to incur additional administrative expenses to handle a large amount of returns lodged by the new taxpayers (www.taxreform.gov.hk) +38.33%

          • but: reducing personal allowances under salaries tax cannot help stabilize the revenue  +18.33%

            • because: during economic downturns, revenue generated from from salaries tax would drop as citizens' income drops  +28.33%

        • because: the government can instead introduce a progressive profits tax  -9.73%

          • but: it cannot broaden the tax base as the burden of the additional tax would fall on businesses currently within the tax net only (www.taxreform.gov.hk) +76.67%

          • but: it would affect Hong Kong's ability to retain and attract businesses, undermine their intention to invest in Hong Kong  +55%

            • because: it might encourage some larger businesses to split up into smaller establishments in order to avoid paying profit tax at a higher rate (www.taxreform.gov.hk) +55%

              • because: introducing a progressive profits tax complicates the tax system  +41.67%

            • because: introducing a progressive profits tax goes against the international trend of reducing direct tax rate (www.taxreform.gov.hk) +48.33%

          • but: progressive tax rate cannot help provide stable revenue  +26.67%

            • because: during economic downturns, revenue generated from progressive profit tax would fall if corporate profits drop (www.taxreform.gov.hk) +68.33%

            • because: revenue generated from profit tax fluctuated by 85% in the past 8 years (www.taxreform.gov.hk) +55%

  • because: a land and sea departure tax is an alternative (www.taxreform.gov.hk) -20.42%

    • but: this tax may affect inbound tourism and the integration of Hong Kong and the Mainland (www.taxreform.gov.hk) +65%

    • but: such a new tax is not fair  +50%

      • because: this tax violates the "capacity to pay" principle and has nothing to do with the income level of individuals  +50%

        • because: under this tax, everyone departing by land or sea would be charged at the same rate  +58.33%

          • Problem: Because this will effect my mcp  


227 hits by logged in students since 30 Oct 2008