sumdud said:
Yes, I know HK sales a lot of land and is its biggest revenue, but land doesn't grow......(My Dad thinks HK will crumble sooner or later since it is nonrenewable land that helps the government....) I know that HK has a low income tax rate and 0 sales tax, but...........if Hong Kong isn't losing money in a way, then why is Hong Kong talking about imposing a sales tax?
SDU are among some of the most famous CT groups.
the government is planning on introducing sales tax because hk's population is getting old. right now, life expectency for its male population is the longest in the world, and for women, it's the fourth longest. overall, right now its life expectency is the second longest in the world. in 3 decades, life expectency in hong kong will be the longest in the world.
this means the majority of the population will be consisted of retired people, strinking the tax base dramatically. that's why they have to think of a new type of tax where more people will fall under it.
but the government still has a large surplus this yr with no debts unlike any other governments in the world. hong kong has never issued government bonds.
regarding the land, the government doesn't only get money from selling lands. they also tax every property trade, and an annual property tax that has a rate proportion to the market value. so when land prices remain high, the government will jsut keep generating a large revenue.