Government overestimated the public's understanding, says financial secretary
Financial Secretary Henry Tang Ying-yen said yesterday the government had overestimated the public's understanding of the goods and services tax when it launched its consultation in mid-July.
Mr Tang also expressed disappointment with the reaction of some political parties and business groups who, he said, gave their views without studying the consultation in detail.
His remarks came as the government prepares to adjust its approach to consultation on the controversial tax. About 800 submissions have been received.
'We overestimated society's understanding of the topic. Hong Kong people are such frequent travellers that we thought they should know the topic reasonably well. Apparently, this is not the case,' Mr Tang said. He was referring to the public outcry after it was revealed the tax would cover not only goods but also services.
Mr Tang also took to task some political parties and business groups for calling for exemptions, despite suggestions in the 89-page consultation document that it would make the system complicated and inefficient, and increase compliance cost.
The proposed tax ran into heavy opposition with the launch of the nine-month consultation. Among the most vocal critics have been members of the Liberal Party, Mr Tang's old party before he joined the cabinet. Liberal Party lawmaker Vincent Fang Kang also chairs the Coalition Against Sales Tax.
