A Singapore tax increase would be nectar for Hong Kong: Bloomberg Gadfly

(Nov 20): Asia’s two rival financial centers are starting to look very different, and the gap is going to widen.

The divergence of Singapore and Hong Kong is already evident in the quality of their transportation networks. MTR Corp.’s main rail lines in Hong Kong have been glitch-free for 5.6 million kilometers of passenger journeys on average this year, while Singapore’s subway operator SMRT Corp., plagued by delays and chaos for six years, plumbed the depth of its despair last week when two trains collided, injuring 36 people.

Taxation levels, the other area where the cities have used one another as benchmarks, are becoming increasingly dissimilar. Singapore Prime Minister Lee Hsien Loong reiterated his finance minister’s call for higher tax rates, telling the annual convention of the ruling People’s Action Party on Sunday that it’s ”not a matter of whether, but when.” With that, analysts started to foresee an increase in the island’s 7% goods and services tax, perhaps as soon as next year.

---

Related Stories

• Why there is no need to be worried about the impending GST hike
• Assurance package increased by $640 mil, GSTV scheme enhanced
• How should Singapore adapt the Goods and Services Tax for the e-commerce era?

---