1. On the matter of Sales Tax, there are a number of advantages.

First of all, stable tax revenue, because that would mean a

wider tax net.

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A fairer tax system.

I understand that yesterday, some of my

colleagues said that a sales tax is regressive. But in the long run, the purchasing power of the low-income group is

rather weak, and so therefore the chances that they have to pay

sales/tax is also lower. The most important thing is that

necessities should be exempt from sales tax.

In paying salaries ftax

there is no

flexibility, whereas sales tax is based on consumption and.

those who wish to be thrifty can choose to

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Third advantage.

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I thank

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So.

Joe evenly

And then, fourthly, the responsibility is shared by'all.

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And five, which is more important. From the comprehensive

and long-term point of view, if Hong Kong is to

to maintain

low tax rate, not only for salaries but also for corporate

Joneien profits, in order to attract more

Xinvest

ifvestment and improve

competitiveness with South Korea, Taiwan and especially

Thailand, a stable low-tax system is a very persuasive factor.

24 Other advanced countries know the advantages of a low tax s

25 rate, only they have very deep-rooted tax systems and cannot

26 change overnight.

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28 The difficulties of a sales tax include the following:

and

30 When the goods are imported or have left the manufacturer, la 31 henever there is large number, There

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First

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of all, the definition of wholesale) is difficult to make.

may be

be several

lc.

do we levy the

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sales tax, if that is to be done, wholesaling?

t

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32 levels of

of wholesaling. So, where, exactly

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Second, it would seem that one is taking the poor. First of

ereel

all, we must overcome the impression that we are taxing the

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