The government proposes to implement a capital gains tax to increase government revenue. Do you agree or disagree?
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Agree |
Disagree |
| Increase fiscal revenue and wealth redistribution. Capital gains tax can provide the government with a stable and predictable source of tax revenue to support public services and infrastructure construction, while also reducing the gap between rich and poor, and promoting social equity and stability. | Cause capital outflow. Hong Kong is an open international financial market, with very flexible and free capital flows. If capital gains tax is implemented, it will weaken Hong Kong’s attractiveness, and prompt investors to move their funds to other regions that do not have this type of tax, resulting in capital outflow, affecting Hong Kong’s financial stability and international competitiveness. |
| Improve investors’ tax norms and compliance awareness. Since capital gains tax can be in line with international standards, investors need to declare and pay taxes in accordance with the law, avoiding tax evasion and avoidance, enhancing tax transparency and fairness. This can also strengthen investors’ sense of social responsibility and ethical standards, maintaining the market order and reputation. | Discourage innovation and entrepreneurship. Hong Kong, as a knowledge-based economy, needs to encourage innovation and entrepreneurship, to cultivate emerging industries and enhance the potential for economic growth. If capital gains tax is implemented, it will squeeze the profit margin of innovators and entrepreneurs, affect their enthusiasm and motivation, and damage Hong Kong’s innovation capability and entrepreneurial atmosphere. |
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Guide resource optimization and real economy development. Capital gains tax can reduce ineffective and rent-seeking investments,investors can allocate more funds from unproductive assets to productive assets and innovation sectors,such as industry, technology, innovation, etc., thereby improving resource utilization efficiency and economic growth potential. |
Increase housing problems. Hong Kong’s housing supply is seriously insufficient, resulting in high housing prices, and many citizens cannot afford their own homes. If capital gains tax is implemented, it will suppress the trading activity of the real estate market, reduce the incentive to sell houses, reduce the circulation of housing supply, cause housing prices to rise further, and worsen the housing problem. |
| Increase investors’ confidence and stability. Since capital gains tax can curb speculation and bubble formation, investors can be more rational and long-term in their market outlook, avoiding blind following and panic selling, thereby reducing market volatility and risk. | Increase administrative costs and complexity. The levy of capital gains tax involves the calculation and verification of asset gains and losses, as well as the identification and distinction of asset sources and nature, which require a lot of manpower and resources, increasing the administrative costs and complexity for the government and taxpayers, and also increasing the possibility of tax disputes and evasion. |