The American Chamber of Commerce in Hong Kong Tuesday suggested the Hong Kong government to broaden tax base.

Chamber Chairman Jon Zinke said at a press conference that a tax system that includes a greater proportion of Hong Kong's population is one in which the stakeholders of political power will more likely use it wisely.

However, the chamber opposes introduction of sales tax which would be highly regressive, complex for businesses to administer and weaken Hong Kong's retail competitiveness.

The chamber would prefer to see a revised tax system that brings a greater number of wage earners into the tax system, while ensuring that the lowest income groups are well protected, said Zinke.

Zinke also said that in the coming one year the chamber would work with Hong Kong government and businesses to help make Hong Kong China's trading window to the world.

He believed that while Hong Kong will continue to be the window and stepping stone for US and international business investment into China, it also has the potential to serve the same role for Chinese businesses looking to invest overseas.

Source: Xinhua