Taxes in Hong Kong may be on the rise. The region's Chief Executive is pushing to build public housing and develop land. It's causing financial strain, and could put Hong Kong's budget books in the red, according to accounting firm KPMG China.
currently has a 40 billion Hong Kong dollar surplus for this financial year, which ends in March.
But KPMG's Tax partner Jennifer Wong says the development plan could lead to a deficit of 45.9 billion Hong Kong dollars next year, if the government doesn't raise taxes.
KPMG says instead of increasing individual income taxes, Hong Kong regulators could impose a goods and services tax to narrow the budget gap. According to the South China Morning Post, Wang says a tax rate of three to five percent could prevent the deficit.
A 2006 proposal to introduce the GST was widely opposed by accountants and the public.
Hong Kong's finance secretary will be announcing his budget at the end of the month, but right now there's no sign that the goods and sales tax will be implemented.
For more news and videos visit ☛ http://ntd.tv
Follow us on Twitter ☛ http://twitter.com/NTDTelevision
Add us on Facebook ☛ http://on.fb.me/s5KV2C