We've not won over the majority, says finance chief, but denies sales tax decision is tied to Election Committee vote
In a sudden about-turn, Financial Secretary Henry Tang Ying-yen yesterday shelved the goods and services tax, saying the government would stop advocating the levy during the remaining four months of its consultation on tax reform.
The announcement marked the end of the government's months-long battle to rally the community behind the controversial GST, which has faced challenges from some of Mr Tang's former allies and seen a dip in his and the government's popularity.
The timing of the announcement fuelled speculation of possible political intervention, as it came just after the visit by National People's Congress chairman Wu Bangguo to the city and days before Sunday's poll to return the 800-strong Election Committee that will choose the next chief executive.
Mr Tang said after an Executive Council meeting yesterday that the decision was a result of an interim review of the nine-month consultation, which began in July. Opposition to a GST had stood at a constant level of more than 60 per cent in recent months, he added at a press briefing later.
'It is clear from the views collected that we have not been able to convince the majority to accept a GST as the main option to address the tax base issue,' he said.
