The Government is unlikely to introduce a sales tax within the next few years due to technical difficulties and potential public opposition, according to accounting firm Deloitte Touche Tohmatsu.
A sales tax could broaden Hong Kong's narrow tax base and provide a stable source of income for the Government, partner Anthony Tam Chun-hung said.
However, in-depth studies had to be done on how the tax could be collected fairly and economically before it could be implemented, Mr Tam added yesterday.
Mr Tam cited the example of Canada, which had taken five years to complete a study on its goods-and-services tax.
'As a direct tax which hits both the rich and the poor to the same extent on their purchases, it will likely arouse resentment from less well-off consumers,' he said.
Delivering a preview of the Budget for the financial year starting on April 1, Mr Tam reiterated the firm's forecast of a $50 billion budget deficit for the year to March 31.