Hong Kong's Budget Deficit - 2024-2025

[Mirindix]

The difference being those in the West get to vote for what they want, here they are told what they want.

Yes absolutely, for example the fantastic choice between Trump and Harris, the people wanted Brexit and got it, or the party of choice that ends up needing to working with 5 others and then backtrack from many election campaign promises

Pros and cons...that's life

[hullexile]

Yes absolutely, for example the fantastic choice between Trump and Harris, the people wanted Brexit and got it, or the party of choice that ends up needing to working with 5 others and then backtrack from many election campaign promises

Pros and cons...that's life

Democracy is shit but it is better than the alternatives.

[nivek2046]

At the moment it seems attempts are some initiatives being rolled out be it talent scheme, for family offices, view towards Southeast Asia and Middle East... and follow prudent expenditure like in the biggie healthcare

May take some time to reflect, maybe never does... going down the never-ending tax and expenditure hike spiral like much of G20 is not really what would make a small jursidiction, an international financial center attractive

Ultimately, if revenue and expenditure can't be balanced, then imposing a GST might be the best of bad options, but also would make the tax system less simple/ straightforward. We will see

GST does not and will not work in Hong Kong. (Henry Tang studied this.)

The government should give cash handouts to the poor, not the other way around.

[er2]

GST does not and will not work in Hong Kong. (Henry Tang studied this.)

The government should give cash handouts to the poor, not the other way around.

Henry Tang studied something that wasn’t a wine list?

[newhkpr]

Yes absolutely, for example the fantastic choice between Trump and Harris, the people wanted Brexit and got it, or the party of choice that ends up needing to working with 5 others and then backtrack from many election campaign promises

Pros and cons...that's life

...

[RobRoy]

GST does not and will not work in Hong Kong. (Henry Tang studied this.)

The government should give cash handouts to the poor, not the other way around.

Tell me more, HK changed quite a bit consumption wise since pre-Covid..

[hullexile]

Tell me more, HK changed quite a bit consumption wise since pre-Covid..

I am also intrigued. What makes Hong Kong special in this way?

[nivek2046]

(1) income inequalities in Hong Kong


https://sccei.fsi.stanford.edu/china...l-places-world

(2) costs of rent and properties -- the highest in the world

https://www.cbre.com.hk/press-releas...roperty-market

(3) the expected prohibition/criminalisation of Subdivided Unit would cause rent to go up even more for the poor.

https://news.rthk.hk/rthk/en/compone...0-20241027.htm
https://hongkongfp.com/2024/10/28/no...ng-chief-says/

(4) introduction of GST or VAT would cause more HKers to spend their money in the Greater Bay Area and buy more from taobao, PDD, XHS, etc.

[hullexile]

income inequalities in Hong Kong


https://sccei.fsi.stanford.edu/china...l-places-world

costs of rent and properties -- the highest in the world

https://www.cbre.com.hk/press-releas...roperty-market

introduction of GST or VAT would cause more HKers to spend their money in the Greater Bay Area and buy more from taobao, PDD, etc.

Hong Kong's Gini coefficient is high but that chart is misleading because of the countries selected. Plenty of countries with as near as high coefficient happily use a sales tax. Hong Kong is 0.47, the Philippines is 0.39 where sales tax is a major tax revenue.

Not sure how high property prices impact. London has both high property prices and high sales tax.

[er2]

I actually don't disagree with the opinion that there are better revenue sources than GST. In a place like HK where scarcity is a key cost driver, I think there are plenty options, property tax on non owner-occupied houses or road tax (I'm a huge fan of Singapore's CoE) spring to mind. Heck, I think even raising income tax would be better - people aren't going to move abroad just because the top tax rate goes from 15% to 20%. GST will affect the grandpa on fruit money in the same way it affects Li Ka Shing - I really don't see a reason for this.