A victory for common sense.

Hong Kong drops sales tax plans

Hong Kong has one of the lowest tax regimes in the world
The Hong Kong government has dropped plans to introduce a new sales tax in the face of public opposition.

It had hoped that a goods and sales tax (GST) would bring in an extra $3.8bn (£1.9bn) in revenues to boost the city's public services budget.

Hong Kong currently has one of the world's lowest tax regimes, with a 16% personal rate and 17.5% for businesses.

Critics said a new sales tax would hit lower income groups disproportionately and could also hurt tourism.