The initiative of enlarging Hong Kong's tax base by introducing the Goods and Services Tax (GST) is the most workable way to prepare the special administrative region against future crisis, said the Hong Kong chief executive Tuesday.

"We believe that the introduction of a GST is the most practical initiative to ensure a stable source of public revenue," Chief Executive Donald Tsang told reporters Tuesday after an Executive Council meeting.

The chief executive said he understand the public is conservative about the introduction of GST, but the government believes GST is the right way though it is unpopular. "Evasion is never a way out," added Tsang.

Tsang cited three reasons for the introduction of GST, including Hong Kong's externally oriented economy, rapidly aging population and large expenses on welfare. He asked the public to see the challenge from an objective point of view.

Source: Xinhua