Updated at 7.36pm: Sales tax - which is controversial and unpopular in the SAR - was one of 13 new taxes proposed by a Government advisory body on taxation reform on Monday. At the launch of a two-month public consultation exercise, the Advisory Committee on New Broad-Based Taxes said new taxes were needed for the Government to raise more revenue. Advisory body chairman Moses Cheng Mo-chi said: ''Sales tax is one of the most stable and effective measures to broaden the tax base. ''The purpose of introducing sales tax is not to increase taxes but to broaden the tax base and this makes the tax system stronger. Tax evasion can be prevented if new taxes are levied at the retail level...'' He said measures would have to be introduced to protect low income earners and social welfare beneficiaries. He said if a three per cent sales tax was levied, an extra $180 billion in revenue would be generated. ''The new sales tax would not have an adverse effect on Hong Kong's tourism. Tax rebates would be made available to tourists,'' Mr Cheng said. The new proposals include: Taxes on capital gains, interest, dividends and income overseas. A departure tax; payroll and social security taxes; poll tax; and a tax on mobile telephones and signboards. A possible 10 per cent reduction on tax allowances and raising taxes on salaries and profits by one per cent. and raising stamp duty on property. Lawmakers criticised the new move. Legislator Sin Chung-kai said: ''The new tax policy will have an adverse effect on the local retail, wholesale and tourism industries. The government should not introduce the move when the economy is still depressed,'' he said.