Last updated at 4.48pm: A lack of public support has led the government to abandon plans to introduce a goods and services tax (GST), Financial Secretary Henry Tang Ying-yen announced on Tuesday.
Mr Tang said public views garnered in the past five months showed most Hong Kong people accepted that the territory had to widen its tax base but did not think a GST was the best way.
?We have heard clearly a strong opposition to the GST from the public,? he said.
The financial secretary said the government would stop selling the plan for the controversial levy during an ongoing consultation on tax reform.
Presenting an interim summary of the consultation ? which will close in March ? to the Executive Council, Mr Tang urged the public to continue considering other alternatives for widening the tax base, as public consensus on the issue was clear.
?Though the economy has been improving, the public recognises that it is important for us to prepare for bad times,? he said.
