The document discusses whether introducing a Goods and Services Tax (GST) would be an appropriate measure to broaden Hong Kong's tax base. It first defines GST and provides background on its widespread implementation globally. It then argues that Hong Kong needs to broaden its tax base due to issues like volatile government revenue, an aging population, and pressure on public expenditure. Introducing GST could help address these issues by producing stable tax revenue and spreading the tax burden more evenly. A GST would also help Hong Kong maintain its competitiveness by avoiding heavy reliance on other taxes and retaining its low-tax environment. The document concludes that GST is the best option to broaden Hong Kong's tax base.

1. IS GST AN APPROPRIATE MEASURE TO BROADEN THE TAX BASE IN HONG KONG?

7. The Need to Broaden Tax Base (1) Highly Volatile Government Revenue