For one noodle shop operator in Causeway Bay, the ongoing studies on the introduction of a goods and services tax (GST) provide little comfort.
Kwok Yue-chiu (right) operator of the Li Yuen Noodle Shop, said retailers were frustrated about the proposed tax because some, such as those in Causeway Bay, had already been hit hard by recent rent increases.
Mr Kwok, 50, has been running the shop - owned by his brother - for 37 years, and pays $200,000 a month in rent. He said the proposed tax would be a big blow to operators like him. 'I am very worried that business might drop once the tax is imposed. Consumers will stop dining out and going shopping once the tax is imposed.
'Some landlords are already leasing out shops instead of doing business themselves, as they cannot generate enough income to cover costs, let alone extra tax.'
The financial secretary said a GST was still on the tax-reform agenda for the long term given the need to widen the revenue base.
Mr Kwok believes many small and medium-sized stores would not survive the introduction of a sales tax.
