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Jimmy Cheung

Only 31pc of those polled say they are  in favour of a goods and services levy

Accountants have shown strong opposition to a goods and services tax, with nearly two-thirds of respondents to a survey rejecting  the government's proposal.

Sixty-two per cent were against a  GST, compared with 31 per cent in favour,  according to the survey commissioned by the Legislative Council's accountancy representative, Mandy Tam Heung-man.

The Civic Party legislator sent questionnaires to 26,000 accountants last month and had received 311 responses by Friday.

Most did not see the need for a GST, but 63 per cent agreed with the government that there were  problems in public finance.

Among those who agreed there was a structural problem with Hong Kong's public finances, 48 per cent opposed a GST, while 45 per cent were in favour.

Eighteen per cent said high government spending was the biggest problem, while 34 per cent pointed to the narrow tax base. Forty five per cent pointed to both  factors.

Six out of 10  did not believe the government would honour its pledge that revenue generated from a GST would be offset by other tax concessions.

Only 28 per cent believed it would stay revenue-neutral.

Ms Tam said the administration should first control  public spending and raise work efficiency.

'The government should explore other ways to broaden the tax base,' she said, referring to the respondents' preferences for other methods of raising money, such as  a progressive profits tax and capital gains tax.

Defending the consultation on a Commercial Radio programme yesterday, executive councillor Ronald Arculli  said politicians lacked the vision to tackle long-term problems.

He believed parties recognised problems facing Hong Kong, like an ageing population and pressure on public spending, but many  shot down proposals immediately because of public opposition.

He also hit back at claims that the government would rely on the surplus in the Exchange Fund instead of widening the tax base. He said the Exchange Fund served to stabilise the currency and the finance system.

'We don't know whether it will take three years or five years for the Chinese yuan to de-link. What would be the impact on the Hong Kong dollar?' he asked.

Increasing the rates levy would not be feasible either, he said, as ratepayers would then face the prospect of a twofold increase in bills to match the amount  that would be raised by a GST.

Another survey showed that about 70 per cent of teachers objected to a GST and they would spend less after the tax was introduced.

The Hong Kong Women Teachers' Organisation interviewed 657 teachers this month.  Half said they would have less money to save and invest if the tax was introduced, while 11 per cent would consider delaying their retirement.



Accountants voice strong opposition to sales tax