Letter to all: Complete withdrawal of the spicy only provides short-term stimulation, calling on the Hong Kong government to thoroughly review the tax system.

On February 28, the Financial Secretary of Hong Kong announced the comprehensive "withdrawal of cooling measures" in the property market. In response to this, Chan Kam Wing, Tax Partner of ShineWing (Hong Kong) CPA Limited, stated that the comprehensive withdrawal of property market cooling measures may boost market sentiment in the short term, but economic recovery and growth in citizens' income are the most effective and fundamental ways to improve housing demand and stabilize the real estate market. Chan Kam Wing pointed out that the Hong Kong government urgently needs to consider how to reduce expenditure and increase revenue. Although the current economic environment is challenging and not a good time to impose new taxes, ShineWing once again called on the Hong Kong government to comprehensively review the tax system, consider feasible reform proposals to broaden the tax base, and keep Hong Kong competitive in the rapidly changing global market. In addition to short-term and one-off measures, Hong Kong needs to develop a visionary long-term development plan to strike a balance between investing in future prosperity and adhering to prudent financial principles to withstand adversity. Regarding the restoration of hotel room tax, Chan Kam Wing stated that ShineWing believes issuing bonds to fund infrastructure investment and long-term economic development is the right direction, but restoring hotel room tax contradicts the Hong Kong government's goal of revitalizing the tourism industry, as it will make already high hotel room prices even more expensive, further discouraging overnight visitors. Furthermore, the Hong Kong government has effectively increased the tax-free threshold for individual salaries by not adjusting it according to the inflation rate to increase the income tax of the general public.