GST plan is not dead, survey finds

Opinion leaders believe the proposal will be back on the table in next five years

Most people believe the government has not given up on the idea of a goods and services tax and that it is only a matter of time before a sales levy is introduced, according to a poll.

More than half, or 56 per cent, of respondents believe the government will revive the plan for a GST in the next five years, with 36 per cent saying it would be introduced, but not within five years. About 8 per cent said it would never be introduced.

Financial Secretary Henry Tang Ying-yen shelved a GST consultation last month after the government found it did not have majority support for the tax.

The survey of 690 opinion leaders, conducted by SCMP/TNS last month, found that 54 per cent of respondents agreed with the government's decision to shelve the consultation, while 26 per cent were opposed to it. Sixty-three per cent said one reason for shelving GST was the poor public response, while 60 per cent believed the chief executive election was a reason.

Eighteen per cent believed the consultation was shelved due to pressure from Beijing.

Asked to rate the government's performance in the GST consultation out of a possible 10, most respondents said the administration's performance was poor. They gave an average 3.6 points out of 10, while half the respondents gave 1 to 3 points to the administration.