Hong Kong should tone down ‘laissez-faire’ business attitude, says Canadian Chamber president
Canadian Chamber of Commerce in Hong Kong president praises Carrie Lam’s tax initiatives for small business but says more needs to be done
The government’s new tax initiatives were a good start towards fostering small and medium companies but more must be done to overcome Hong Kong’s overly “laissez-faire” attitude towards business, the Canadian Chamber of Commerce in Hong Kong president said on Monday.
The comment came as Chief Executive Carrie Lam Cheng Yuet-ngor attended the chamber’s lunch to promote her policies and engage with business owners.
Lam announced this month that companies will soon pay tax of 8.25 per cent on the first HK$2 million (US$256,000) of profits, half from the existing flat rate of 16.5 per cent.
Companies that invest in research and development (R&D) could get a 300 per cent tax deduction for the first HK$2 million.
Lam outlined a “new fiscal philosophy” in her manifesto, saying the government had to shift from its traditional role as a regulator and service provider to facilitator and promoter.
She proposed a new direction for taxation to enhance competitiveness, and a ramp-up in spending, even going into deficit if it was in the public interest.
