63. Members are concerned about our
fiscal deficit and have suggested various measures to
cut expenditure and raise revenue. In fact, the Government
has been reducing the deficit according to set targets
and is determined to, and confident of, restoring fiscal
balance by 2008-2009. Some Members have suggested the
introduction of a goods and services tax as a feasible
option to broaden the tax base. We are examining this
proposal. In any event, our economy is still at the
early stage of post-recovery consolidation. Overseas
experience suggests that this is not the appropriate
time to introduce a goods and services tax. Therefore,
the Government will definitely not implement such a
tax in the next two and a half years.
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