The proposed tax reform has been designed to maintain the logistics industry's competitiveness, the Finanical Services & the Treasury Bureau says.

The bureau said as exports of goods and international supplies are proposed to be zero-rated, there would be no GST on these goods and services so that these trades' competitiveness would not be affected.

It has also proposed a generous definition to include as many exports-related ancillary and supporting services for zero-rating as possible.

Schemes favourable to importers

Proposed facilities such as the Deferred GST Payment Scheme and implementation of a Qualifying Exporters Scheme would be helpful to importers in relieving their possible cashflow concerns.

Similar GST postponement schemes were in place in most other jurisdictions with a GST. These proposed schemes would help maintain Hong Kong's competitiveness as an international trading and logistics hub. 

While the Government fully appreciated the concerns of the logistics trade on likely increases in workload and costs for complying with the GST goods declaration requirements, it was committed to keep them as simple as possible while incurring minimal changes.

Charges, duties lowered
Under the proposal, trade declaration charges would be reduced, and fuel duties would also be lowered to enhance the trade's competitiveness.

Importers and exporters are allowed to electronically file goods and trade declarations simultaneously to reduce workload.