A Study On Introduction Of Goods And Services Tax System In Hong Kong

Nowadays, Hong Kong's economy is stepping up after the previous economic fluctuations. However, compared with the international taxation system, Hong Kong's taxation system is still very simple (or narrow). Generally speaking, Hong Kong's tax income is depending on limited taxes and it aggregate with another normal government income to support the city's public expenditure. Therefore, a new tax system is required to maintain the local economic growth, enhancing the global competitive ability and coping with the unforeseen economic disaster."Good and service tax" (GST), is a tax using worldwide in current time, because it can sustain and satisfy the local economic growth and financial needed. Accordingly, Hong Kong government has gathered bunch of information and considering to impose the tax in the local area. Nevertheless, various views in the society cause barriers to impose the new tax system.In this dissertation, the imperfect taxation structure in Hong Kong will be discussed in detail first, mainly problems included limited tax categories, low collecting ability of tax, tax income is mostly depends on uncontinuing taxes and high expenditure on social welfare. Followed by comparing the experience of imposing GST in other countries and eventually, recommend that issuing GST can raise and retain the tax income of Hong Kong.