Hong Kong authorities should consider gradually raising some service charges to a cost-recovery level for the government’s long-term financial health despite the move not having an immediate effect on the nearly HK$100 billion (US$12.8 billion) deficit, experts have said.
Amid calls for the government to tighten its belt, some have suggested raising charges for public healthcare services and university tuition fees for non-local students to ensure levels are linked to costs and those who use the services pay for them, rather than falling on taxpayers alone.
Anthony Lau Ming-young, who co-chairs the taxation committee of accounting body CPA Australia, suggested authorities take reference from advanced economies and increase immigration-related charges.
“Hong Kong doesn’t have to match the pricing level of those countries, but there is plenty of room to raise the charges,” he said.
For example, Hong Kong collected more than HK$200 million a year from visas, entry permits and extensions of stay, which was only 1 per cent of that of Australia, he said.
