THE Hong Kong Society of Accountants (HKSA) is urging the Government to broaden the tax base by introducing a wholesale sales tax while reducing profits tax and eliminating property tax in the 1994-95 Budget. However, the HKSA did not propose a rate for the wholesale sales tax or determine how much revenue it would raise if implemented. Peter Tosi, a member of the HKSA's taxation committee, yesterday said it was important for the Government to pass legislation to introduce a wholesale sales tax but not to implement it now while the economy was doing well. While indirect taxes, such as a value-added tax (VAT) and goods and services tax (GST) have seen widespread use in the West for a long time, Mr Tosi said they were just beginning to gain favour in Asia. He said Malaysia and Indonesia both introduced value-added taxes several years ago and Singapore would implement a three per cent goods and services tax next year while lowering salaries and profits taxes. The HKSA said a wholesale sales tax would bring more taxpayers into the fold and alleviate the load on the seven to 10 per cent of taxpayers who now paid 60 per cent of the total salaries tax. ''It's a question of choice,'' Mr Tosi said when asked if an indirect tax would put a further burden on the small group already paying their fair share. ''If you introduce an indirect tax, people have the choice to buy or not.'' Mr Tosi said the inflationary effects of an indirect tax could be controlled by easing the tax burden in other areas. For example, he said a one per cut reduction in profit tax to 16.5 per cent would save $3.5 billion. The HKSA has maintained that the one per cent rise in profits tax in the 1991-92 budget was a step in the wrong direction and should be reversed. It suggested profit tax and salaries tax be harmonised into one rate if possible. The HKSA also proposed there be no change in the salaries tax rate of 15 per cent, a reduction in the top rate to 23 per cent from 25 per cent, and adjustments in personal allowances upwards, in line with inflation. Mr Tosi said abolishing property tax and introducing provisions to bring existing property taxpayers into the profits tax net would reduce the compliance obligations of corporations and eliminate the need for individual taxpayers to apply for personal assessment to obtain relief for interest expense. Despite an increase in stockmarket activity, which has boosted the coffers of the government, Securities and Futures Exchange and the Stock Exchange of Hong Kong, the HKSA proposed stamp duty remain at the same level. Mr Tosi said the HKSA saw no reason for it to be reduced because it was ''a significant revenue resource at the moment and it doesn't harm anyone''. Critics of the stamp duty argue it makes it more expensive for institutions to make transactions in Hong Kong and force many of them to deal in London or New York.