3
THURSDAY, NOVEMBER 3, 1988
"AND THIRDLY, WE SHOULD BE ABLE TO SATISFY OURSELVES TAX WOULD BE SIMPLE AND CHEAP TO ADMINISTER,
HE SAID.
THAT THE
HONG
HAD EXAMINED, TURNING TO THE OPTIONS WHICH THE ADMINISTRATION THE FINANCIAL SECRETARY SAID HE DID NOT CONSIDER IT SUITABLE FOR KONG TO EMPLOY THE VAT.
14
IS
INVOLVED, HE TAX WOULD BE EVASION AND
"I AM EVEN DOUBTFUL WHETHER A SALES TAX AT THE RETAIL LEVEL RIGHT FOR US BECAUSE OF THE LARGE NUMBER OF BUSINESSES SAID, ADDING THAT THE ADMINISTRATION OF SUCH COMPLICATED, THE SYSTEM MIGHT BE SUSCEPTIBLE IRREGULARITIES WOULD OFTEN BE DIFFICULT TO DETECT.
A
TO
LEVEL MIGHT POSSIBLY
WHILE A TAX AT THE IMPORT/MANUFACTURING
ADMINISTRATIVE MEET THE THREE BASIC CRITERIA, IT WAS ANTICIPATED THAT
IMPORTED OR DIFFICULTIES COULD ARISE IN SEEKING TO DISTINGUISH THOSE
IN THE MANUFACTURING PROCESS LOCALLY MANUFACTURED GOODS TO BE USED AND THOSE TO BE SOLD FOR LOCAL CONSUMPTION.
(REFERRED TO
THE OPTION OF A SINGLE STAGE WHOLESALE SALES TAX AS "SALES TAX" BELOW) MET ALL THREE OF THE BASIC CRITERIA ALTHOUGH MIGHT SHARE SOME OF THE PROBLEMS MENTIONED ABOVE, HE SAID.
"OUR CURRENT THINKING
TAX'
IT
IS THAT THE 'SALES
UNDER THIS ΤΟ AND WHOLESALERS FALL ON
BY SALES
MANUFACTURERS SYSTEM WOULD
OF TRANSFER
OWNERSHIP OF RETAILERS. LIABILITY WOULD ARISE WHEN THE
PLACE," TOOK
MR RETAILER THE GOODS FROM THE LAST JACOBS SAID.
WHOLESALER
TO
"AN IMPORTANT ADMINISTRATIVE FEATURE OF THIS TAX WOULD NEED FOR MANUFACTURERS AND WHOLESALERS TO BE REGISTERED.
"ON REGISTRATION THEY WHICH, WHEN QUOTED TO ANOTHER TAX-FREE HANDLING OF GOODS AT THE INTERMEDIATE STAGES OF BEFORE THE TAXING POINT, COUNTING OF THE TAXABLE VALUE OF GOODS."
THEREBY
DOUBLE,
BR THE
WOULD BE
A GIVEN
PERSON, REGISTERED
PREVENTING
OR
CERTIFICATE
WOULD PERMIT THE DISTRIBUTION MULTIPLE,
NUMBER
MADE
"SALES TAX" WOULD THEREFORE ONLY BEEN WHO HAD NOT TO A PERSON
LIABILITY TO THIS KIND OF
ARISE WHEN A SALE
HAD
BEEN
REGISTERED, HE EXPLAINED.
COVERAGE
OF
WHICH THE TAX ON TURNING TO THE
SAID AT THIS STAGE INTEREST WOULD FOCUS, MR JACOBS COUNTER-PRODUCTIVE FOR HIM TO SPECULATE AS TO THE LIKELY ANY FUTURE "SALES TAX" IN HONG KONG.
MOST
PUBLIC
BE IT WOULD
COVERAGE OF
WHEN
"OBVIOUSLY THE EXTENT OF COVERAGE WOULD DEPEND LARGELY ECONOMIC CONDITIONS AND SOCIAL VALUES PREVAILING IF AND TAX WERE INTRODUCED.
ON THE SUCH A
/"AND INCIDENTALLY,
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