From The Wall Street Journal:
The Hong Kong government has abandoned its campaign for a new goods-and-services tax in the face of insurmountable political opposition, a policy reversal that displays the current administration’s weakened position as it approaches the end of its term.
Financial Secretary Henry Tang six months ago launched a public consultation on the proposed sales tax, aiming to convince Hong Kong’s people — who have long enjoyed low rates of tax — that the proposed levy is needed to keep the city’s public finances in balance. Although the consultation period still has three months to run, Mr. Tang said yesterday the public’s response was already clear.[Full Text]
