| Date | Context | Summary of development | Action
|
|---|
| 10.5.00
| ESC
| ESC endorsed the proposed creation of one supernumerary post of Administrative Officer Staff Grade C (AOSGC) (D2) in the Finance Bureau for a period of two years to head a dedicated secretariat to service both the Task Force to review Public Finances and the Advisory Committee on New Broad-based Taxes. [Paper]
|
|
| 9.6.00
| FC
| FC approved a commitment to create one supernumerary post of AOSGC (D2) in the Finance Bureau for a period of two years to head a dedicated secretariat to service both the Task Force to review Public Finances and the Advisory Committee on New Broad-based Taxes. [Paper]
|
|
| 26.9.01
| FA
| The Panel discussed the paper on Progress Report on Review of Public Finances, [Paper] including the consultation document entitled "A Broader-based Tax System for Hong Kong?" issued by the Advisory Committee on New Broad-based Taxes on 6 August 2001 (LC Paper No. CB(1)1862/00-01) and the work progress of the Task Force on Review of Public Finances in examining the issue of structural deficit.
The Panel expressed concern about the scope and time of the consultation exercise and gave views on the introduction of new broad-based taxes. At the request of the Panel, the Administration provided after the meeting supplementary information on the revenue sources of Hong Kong from 1991-92 to 2000-01. [Follow-up Paper]
|
|
| 21.2.02
| FA
| The Panel discussed the Final Report of the Task Force on Review of Public Finances. [Paper] The report set out the Task Force's analysis of the changes and developments in the local economy which had significant effects on government revenue and expenditure. By using a budget model, the Task Force projected the state of government finance up to 2021-22 and having regard to the findings of the projection, concluded that continuation of the current revenue and expenditure policies was not an option. The Government needed to tackle the fiscal problem in a serious manner to achieve fiscal sustainability.
The Panel expressed concern about the reliability and objectivity of budget model projections, the implications of the review results on future government expenditure, the level of fiscal reserves and accumulated surplus in the Exchange Fund, as well as the cost of government spending being consistently increasing faster than the general price levels in the economy.
|
|
| 1.3.02
| FA
| The Panel discussed the Final Report by the Advisory Committee on New Broad-based Taxes. [Paper] The Advisory Committee had assessed 14 revenue options against the principle of good tax systems. Apart from new taxes, the Advisory Committee had also assessed the potential for increasing the revenue productivity of Hong Kong's existing taxes. The Advisory Committee recommended that a Goods and Services Tax (GST) be adopted over the long term. Moreover, it recommended an increase in rates on tenements, a reduction in personal allowances under salaries tax and the introduction of a land and sea departure tax to help bridge the gap pending the implementation of GST.
The Panel expressed concern about the impact of the proposals to increase the revenue productivity of existing taxes and requested the Administration to provide after the meeting supplementary information on the number of new taxpayers who would be brought into the tax net, should the level of personal allowances for salaries tax be reduced. [Follow-up Paper]
The Panel gave views on the introduction of GST and considered that reference should be made to the implementation of GST in overseas tax regimes. The Research & Library Services Division of the LegCo Secretariat prepared an information note on Goods and Services Tax/Value-Added Tax and Profits Tax in Overseas Jurisdictions. [Information Note]
|
|
| 25.10.02
| FA
| The Panel discussed the paper on the Fiscal Deficits and the Budgeting of Government Expenditure for Years from 2003-04 to 2006-07, which set out the deficit situation the Government faced and measures to address the deficit problem, as well as the overall budgeting strategy for 2003-04 to 2006-07. [Paper]
Panel members expressed concern about the Administration's approaches in addressing the deficit problem, the effect of the deficit situation on the fiscal reserves, the approach for consultation on budgetary measures and the Administration's work in reviving the economy. Panel members were also concerned about the remarks made by the Financial Secretary (FS) that in the face of a huge fiscal deficit, there was a need to review the funding priority for public works projects according to the benefits they could bring to the economy. Members also enquired about the measures for containing the Government's operating expenditure.
|
|
| 16.12.02
| FA
| The Panel continued to discuss with FS the problem of fiscal deficits and the budgeting of Government expenditure for years from 2003-04 to 2006-07. [Paper]
The information pack for FS's consultations with LegCo Members on the 2003-04 Budget, setting out the budget principles, the medium range forecast 2002-03, government expenditure and revenue, was provided to the Panel for discussion. [Paper & Follow-up Paper]
Panel members enquired about the measures to address operating deficit and to achieve the target of attaining a balanced Operating Account by 2006-07. Some members expressed concern about the gradual shrinking of the fiscal reserves resulted from the budget deficit, the impact of the cuts in Government expenditure on the vulnerable groups in the community, as well as on public confidence in the economy of Hong Kong.
|
|
| 19.2.03
| FA
| The Panel discussed the paper on Boundary Facilities Improvement Tax (BFIT). [Paper] The Administration proposed to charge BFIT at $18 per person for all persons departing Hong Kong via the land or sea departure points or harbour control points, except for passengers departing by private cars. The tax for private cars would be $100 per vehicle. The Administration planned to introduce a new legislation for implementation of BFIT. Assuming BFIT was levied at the rates proposed, additional recurrent revenue exceeding $1 billion per annum would be brought in for the General Revenue.
Panel members gave views on the proposed arrangements of BFIT and expressed concern about the impact of the tax on tourists and frequent travelers. In this connection, the Panel requested information on similar tax levied by overseas jurisdictions. [Interim Reply & Paper] The Panel also expressed concern over the method for collecting BFIT and requested the Administration to provide after the meeting supplementary information on the Automatic Vehicle Recognition System. [Follow-up Paper]
|
|
| 11.6.03
| COU
| The Administration introduced the Boundary Facilities Improvement Tax Bill into the LegCo on 11 June 2003 and a Bills Committee was formed on 13 June 2003 to scrutinize the Bill.
|
|
| 22.10.03
| COU
| FS delivered a statement on Hong Kong's economy and the management of public finances, announcing the Government's decision of not proceeding further with BFIT at the current juncture given that the public was not yet ready to accept this tax. [Statement "Page 95"]
In the light of the Government's decision of not proceeding further with BFIT, the Bills Committee decided to discontinue its work.
|
|
| 28.10.03
| FA
| The Panel received briefing by FS on Hong Kong's Economy and Management of Public Finances. [Paper]
The information pack for FS's consultations with LegCo Members on the 2004-05 Budget, setting out the budget principles, the medium range forecast, government expenditure and revenue, was provided to the Panel for discussion. [Paper]
Panel members expressed concern about the approach adopted by FS in working out the blueprint for the fiscal position in the coming five years. Members noted FS's decision to adjust the timeline for achieving the original budget targets of attaining a balanced Operating Account and restoring balance in the Consolidated Account, i.e. to achieve the targets by 2008-09. Members urged the Administration to uphold the principle of fairness and consistency in the management of public finances and refrain from further cuts in the expenditure for education, health and welfare services. Members also expressed concern about the means for raising Government revenue, the level of fiscal reserves, and the measures to facilitate economic development and to enhance employment opportunities.
|
|
| 1.11.04
| FA
| FS conducted a briefing for Members to kickstart the consultation process for the 2005-06 Budget. The Panel discussed with FS issues of fiscal deficits, broadening Hong Kong's tax base, unemployment problem etc. [Papers][Papers]
|
|
| 10.11.04
| FA
| The Administration briefed the Panel on its proposals on the new Personalized Vehicle Registration Marks (PVRM) Scheme. The PVRM Scheme was announced by the Financial Secretary in his 2004-05 Budget as a proposal to raise revenue for the Government and to provide more choices of vehicle registration marks to vehicle owners. [Paper] [Background Brief]
Members expressed concerns about the cost-effectiveness and level of deposit of the proposed PVRM Scheme, and its impacts on the income of the Lotteries Fund, law enforcement and intellectual property rights. Given that a majority of the members present did not support the proposed scheme, the Administration was urged to review its proposal, taking into account members' views and concerns expressed at the meeting.
The Administration provided an information paper advising the Panel of the outcome of its review. [Follow-up Paper]
|
|
| 12.1.05
| PA
| The Chief Executive has indicated in the Policy Address 2005 that the Government will definitely not implement GST in the next two and a half years as Hong Kong economy is still at the early stage of post-recovery consolidation and overseas experiences suggests that this is not the appropriate time to introduce such a tax. [Policy Address "Paragraph 63"]
|
|
| 19.1.05
| FA
| The Secretary for Financial Services and the Treasury informed the FA Panel that the Government's Internal Study Committee on GST had completed its study and submitted a report to FS with recommendations on how a GST might be introduced in Hong Kong. FS would announce his plan on how the issue would be taken forward in the 2005-06 Budget. [Paper] [The 2005-06 Budget "paragraphs 102 to 104"]
|
|
| 4.4.05
| FA | The Administration briefed the Panel on its proposal of implementing profits tax exemption for offshore funds. The Administration had conducted two rounds of consultation with the industry and interested parties in early 2004 and early 2005 respectively on the approach for effecting the proposal. According to the Administration, respondents generally considered that the Administration's proposed approach was the correct approach. The proposed legislative amendments had taken into account the views received from the two consultation exercises. The Administration planned to introduce a bill to LegCo in the 2004-05 session to amend the Inland Revenue Ordinance (Cap. 112) for implementing the proposal. [Paper]
The Administration provided additional information to address members' concerns. [Follow-up Paper]
|
|
| 5/05
| BC | The Administration introduced the Revenue (Personalized Vehicle Registration Marks) Bill 2005 into the LegCo on 4.5.05 and a Bills Committee was formed on 6.5.05 to scrutinize the Bill.
The Bills Committee held 6 meetings. [Bills Committee on Revenue (Personalized Vehicle Registration Marks) Bill 2005]
The Bills Committee reported its deliberations to the House Committee on 2.12.05. [Report]
At the request of the Bills Committee, the Administration undertook to conduct an overall review of the Personalized Vehicle Registration Marks Scheme one year after its implementation and report the outcome of the review to the relevant Panel. The Bills Committee referred the subject to the FA Panel for follow-up.
The Council passed the Bill on 14.12.05. [Hansard "Page 107"]
| A
|
5/05
to 11/05
| BC
| The Administration introduced the Revenue (Abolition of Estate Duty) Bill 2005 into the LegCo on 11.5.05 and a Bills Committee was formed on 13.5.05 to scrutinize the Bill.
The Bills Committee held 16 meetings. [Bills Committee on Revenue (Abolition of Estate Duty) Bill 2005]
The Bills Committee reported its deliberations to the House Committee on 21.10.05. [Report]
The Council passed the Bill on 2.11.05. [Hansard "Page 102"]
In scrutinizing the Bill, the Bills Committee discussed the functions to be taken up by the Secretary for Home Affairs (SHA) upon the abolition of estate duty for probate administrative purpose and whether fees should be charged for the functions to be taken up by SHA. The Administration proposed an interim arrangement for SHA to delegate such functions to the Commissioner of Inland Revenue administratively for a period, expected to be one year and that no fee would be charged. [Paragraphs 66 to 71 of the report of the Bills Committee]
The Administration advised on 1 December 2005 that as the question of fee charging related to the functions to be performed in connection with the new statutory powers of SHA under the Probate and Administration Ordinance instead of revenue protection after abolition of estate duty, the issue should more appropriately be discussed by the Panel on Home Affairs.
| A
|
| 1.6.05
| CQ
| Hon Frederick FUNG raised a question on the budget for the current fiscal year. [Hansard "Page 85"]
|
|
| 6.6.05
| FA | The Administration discussed with the Panel on its proposal to revise the fees and charges for certain public services under the purview of the Treasury Branch of the Financial Services and the Treasury Bureau which did not directly affect people's livelihood or general business activities. [Paper]
To address members' concerns, the Administration provided information on the up-to-date position of various bureaux in conducting the review of fees and charges for services under their respective purviews and the timetable to brief the relevant Panels on the results of the review. [Follow-up Paper]
Members noted that implementation of fee revisions for some of the 35 items involved amendments to subsidiary legislation subject to negative vetting of the LegCo. The Administration planned to arrange the tabling of the relevant amendments at the LegCo in the 2005-06 session.
|
|
| 7/05
| BC | The Administration introduced the Revenue (Profits Tax Exemption for Offshore Funds) Bill 2005 into the LegCo on 6.7.05 and a Bills Committee was formed on 8.7.05 to scrutinize the Bill.
The Bills Committee held 3 meetings. [Bills Committee on Revenue (Profits Tax Exemption for Offshore Funds) Bill 2005]
The Bills Committee reported its deliberations to the House Committee on 10.2.06. [Report]
The Council passed the Bill on 1.3.06. [Hansard "Page 124"]
|
|
| 2.11.05
| CQ
| Hon Bernard CHAN raised a question on statistics on salaries tax. [Hansard "Page 74"]
|
|
| 7.11.05
| FA | FS conducted a briefing for Members to kickstart the consultation process for the 2006-07 Budget. The Panel discussed with FS issues of implementing tax cuts, enhancing competitiveness of key industries, promoting employment, broadening Hong Kong's tax base, etc. [Paper]
At the request of the Panel, the Administration provided the supplementary information on the following:
| (a) | A breakdown of Government expenditure on works projects and the changes in percentage for each of the past ten years (i.e. covering the financial years of 1995-96 to 2004-05); and
| | (b) | A breakdown of the profits tax revenue contributed by the top 600 taxpaying corporations for the year of Assessment 2003-04 (Chart 19 of the information pack for the Financial Secretary's consultations on the 2006-07 Budget).
|
[Follow-up paper]
|
|
| 15.2.06
| CM
| A motion on "Reducing the salaries tax" moved by Hon SIN Chung-kai as amended by Hon James TIEN, Hon CHAN Kam-lam and Hon James TO, was passed. [Hansard "Page 258"]
The Administration provided in April 2006 the progress report on its views on the motion and the progress of the follow-up actions taken. [Progress Report]
|
|
| 29.3.06
| CQ
| Hon Bernard CHAN raised a question on statistics on salaries tax payers. [Hansard "Page 9"]
|
|
| 10.5.06
| CQ
| Hon LAM Kin-fung raised a question on personalized vehicle registration marks scheme [Hansard "Page 68"]
|
|
| 18.7.06
| FA
| The Panel was briefed on the consultation document on "Broadening the Tax Base, Ensuring our Future Prosperity: What's the Best Option for Hong Kong?". The document was released by the Administration on 18 July 2006 for a nine-month public consultation on the proposed implementation of a GST in Hong Kong as an option to broaden the tax base. [Consultation Document] [Presentation Material]
The Administration provided its written response to Members' views raised at the meeting and the questions raised by Hon SIN Chung-kai. [List of follow-up actions to be taken by the Administration] [Administration's written response] [List of questions raised by Hon SIN Chung-kai](Chinese version only) [Administration's written response]
|
|
| 18.10.06
| CQ | Hon LAM Kin-fung raised a question on personalized vehicle registration marks scheme [Hansard "Page 18"]
|
|
| 19.10.06
| CM
| A motion on "Opposing the introduction of a Goods and Services Tax" moved by Hon YEUNG Sum was passed. [Hansard "Page 85"]
The Administration provided in February 2007 the progress report on its views on the motion and the progress of the follow-up actions taken. [Progress report]
|
|
| 1.11.06
| CQ
| Hon FUNG Kin-kee raised a question on proposal to introduce a goods and services tax. [Hansard "Page 21"]
|
|
| 6.11.06
| FA
| FS conducted a briefing for Members to kickstart the consultation process for the 2007-2008 Budget. The Panel discussed with FS issues of promoting employment, broadening Hong Kong's tax base, etc. [Paper]
|
|
| 15.11.06
| CQ
| Hon FUNG Kin-kee raised a question on the principles adopted in drawing up the annual budget. [Hansard "Page 77"]
|
|
| 5.12.06
| -
| The Administration provided a LegCo Brief on "Public Consultation on Tax Reform Interim Report" [LegCo Brief]
According to the Administration, the public generally had gained a better understanding of the problems of Hong Kong's narrow tax base and agreed that the Administration should continue public consultation on how to broaden the tax base. Having regard to the strong public opposition against GST, the Administration considered that there was insufficient public support nor were the conditions right for the introduction of GST and hence would not proceed further in this respect. The Administration would continue to consult the public on other viable options of broadening the tax base with reference to the options considered by the Advisory Committee on New Broad-based Taxes in its 2002 report as well as views of the public received in the course of consultation.
|
|
| 6.12.06
| CQ
| Hon FUNG Kin-kee raised a question on collection of rates. [Hansard"Page 115"]
|
|
| 20.12.06
| CQ
| Hon SIN Chung-kai raised a question on transfer of funds to the general revenue account. [Hansard "Page 97"]
|
|
| 10.1.07
| CQ
| Hon TAM Heung-man raised a question on public consultation on options to widen the tax base. [Hansard "Page 81"]
|
|
| 11.7.07
| CQ
| Hon LAU Chin-shek raised a question on introducing a tax on dividend income. [Hansard "Page 52"]
|
|
| 31.10.07
| CQ
| Hon SIN Chung-kai raised a question on monthly profits tax income. [Hansard "Page 105"]
|
|
| 5.11.07
| FA
| FS conducted a briefing for Members to kickstart the consultation process for the 2008-2009 Budget. Members gave views and suggestions on welfare for the elderly, relief measures for disadvantage groups, tax relief measures and measures to promote employment etc. [Paper]
|
|
| 7.11.07
| CQ
| Hon SIN Chung-kai raised a question on income from stamp duty on stock sales and purchases. [Hansard "Page 86"]
|
|
| 14.11.07
| CM
| A motion on "Rated relief" moved by Hon CHEUNG Hok-ming as amended by Hon Frederick FUNG Kin-kee, Hon SIN Chung-kai, Hon Jeffrey LAM Kin-fung, Hon Ronny TONG Ka-wah, Hon CHAN Kam-lam and Hon Miriam LAU Kin-yee was passed. [Hansard "Page 129"]
The Administration provided in January 2008 the progress report on its views on the motion and the progress of the follow-up actions taken. [Progress report]
|
|
| 5.12.07
| CQ
| Hon LAU Wai-hing raised a question on timing of consultation on the 2008-2009 Budget. [Hansard "Page 85"]
|
|
| 28.2.08
| FA
| The Administration briefed the Panel on the outcome of the review of the Personalized Vehicle Registration Marks Scheme after the first year of implementation.
[Paper]
[Background brief]
[Follow-up paper]
|
|
| 1.12.08
| FA
| FS conducted a briefing for Members to kickstart the consultation process for the 2009-2010 Budget. The Panel discussed with FS issues of promoting employment, measures to assist the low-income groups and small and medium enterprises in face of the current global financial turmoil. [Paper]
|
|
| 7.12.09
| FA
| FS conducted a briefing for Members to kickstart the consultation process for the 2010-2011 Budget. The Panel discussed with FS measures to facilitate economic development, promote employment, and alleviate problem of poverty. [Paper]
|
|
| 10.3.10
| CQ
| Hon Mrs Regina IP LAU Suk-yee raised a question on measures to broaden the tax base. [Hansard "Page 68"]
|
|
| 17.3.10
| CQ
| Hon Starry LEE Wai-king raised a question on waiver of Government rent. [Hansard "Page 96"]
|
|
| 17.3.10
| CQ
| Dr Hon LAM Tai-fai raised a question on Joint Liaison Committee on Taxation. [Hansard "Page 116"]
|
|
| 7.7.10
| CQ
| Hon WONG Kwok-hing raised a question on renovation of offices and procurement of office furniture and stores by heads of government departments. [Hansard "Page 123"]
|
|
| 10.11.10
| CQ
| Hon Paul CHAN Mo-po raised a question on levy of profits tax on profits arising from property speculation.
[Hansard "Page 77"]
|
|
| 15.12.10 |
CQ |
Hon Paul CHAN Mo-po raised a question on proposals to enhance taxation system and policy. [Hansard "Page 90"] |
|
| 28.3.12 |
CQ |
Hon Paul CHAN Mo-po raised a question on underestimation of fiscal surpluses. [Hansard "Page 69"]
|
|
Bills Committee on the Boundary Facilities Improvement Tax Bill [Papers & Report]
