BEIJING, July 17 -- Hong Kong's government will get HK$30 billion (US$3.86 billion) in revenue if it introduces a 5 percent sales tax, according to a document submitted to legislators.

    The additional income may enable the government to cut its salaries or profits taxes, the government said in a presentation posted on the Legislative Council's Website on Saturday. It will present the plan to legislators tomorrow, and begin a nine-month public consultation on the same day, Bloomberg News said.

    Financial Secretary Henry Tang is proposing a goods and services tax to give the government a steadier source of income, reducing its dependence on taxes on salaries and corporate profits that are more cyclical.

    Hong Kong, which competes with other Asian cities such as Singapore, already has some of the lowest taxes in the region. Its profits tax rate is 17.5 percent, compared with 20 percent in Singapore and 27.5 percent in South Korea.

    The government plans to give allowances to the poor to mitigate the impact of the sales tax.

(Source: Shanghai Daily)