GOVERNMENT DROPS SALES TAX PLANS EXERCISES & ANSWER KEY

Transcription

1 EXERCISES GOVERNMENT DROPS SALES TAX PLANS EXERCISES & ANSWER KEY Listening Comprehension Exercise 1. Why has Hong Kong decided not to go ahead with its plans to introduce a new sales tax? a) Because it doesn't need the tax. b) Because the public are against the tax. c) Because it would be illegal to introduce the tax. 2. How much was it estimated that the new sales tax would earn the government each year? a) US$8.3 billion b) US$13.8 billion c) US$3.8 billion d) US$380 billion 3. What does the government need extra revenue for? a) Hong Kong's welfare budget b) Hong Kong's new infrastructure projects c) Hong Kong's public services budget 4. Hong Kong as the lowest tax rates in the world. 5. What is the personal tax rate in Hong Kong? (in %) 6. What is the business tax rate in Hong Kong? (in %) 7. What % of Hong Kong salary earners pay income tax? (in %) 8. What % of the total income tax collected do the top 100,000 tax payers contribute? (in %) 9. Hong Kong has a wide tax base. 10. Who did critics of the sales tax say would be affected most? a) Higher income groups b) Middle income groups c) Lower income groups 11. What did critics of the sales tax say might be affected? a) Tourism b) Foreign Investment c) Exports d) Imports 1

2 12. How long did the government consult for on the proposed sales tax? 13. What is the problem with Hong Kong's population? a) It has too many young people. b) It doesn't have enough workers. c) It has too many older people. 14. The Hong Kong government went into debt after the Asian financial crisis in the late 1990s. c) ANSWER NOT GIVEN 15. According to Henry Tang, the public understands that the tax base needs widening. 16. What is Henry Tang's position within the government? a) Financial Secretary b) Finance Minister c) Minister for Financial Affairs 17. Which one of the following is the government NOT considering as an option to widen the tax base? a) Increasing rates b) Introducing a land and sea departure tax c) Increasing fuel tax d) Deducting personal allowances for salaries tax Article Completion Exercise The Hong Kong government (1) plans to introduce a new sales tax because of (2). It had hoped that a goods and sales tax (3) an extra US$3.8 billion in revenues to (4) the city's public services budget. Hong Kong currently has one of the world's (5), with a 16% personal rate and a 17.5% (6) businesses. Only 35 per cent of Hong Kong salary earners pay income tax and (7) 100,000 tax payers (8) 58 percent of income tax, creating a (9). Critics said a new sales tax (10) lower income groups disproportionately and could also (11). The government had held a nine-month (12) the planned tax reform. It has said that the territory needs to boost its sources of (13) in order 2

3 (14) the welfare burden of an ageing population and any future (15). The city ran up (16) in the late 1990s after the Asian (17). "Although the public understands that the goods and sales tax can (18) our tax base, it is clear from the views collected that we have not been able to (19) to accept the goods and sales tax as the main (20) to address the tax base problem," said Financial Secretary Henry Tang. The government is considering a number of other options to (21) the tax base. These include raising rates, (22) for salaries tax and introducing a land and sea (23) tax. boost broaden consultation on contribute convince the majority deducting personal allowances departure economic downturns financial crisis has dropped hurt tourism large deficits lowest tax regimes narrow tax base option public opposition public revenues rate for the top to cope with widen would affect would bring in Key Words and Expressions Exercise 1. The company has its plans to open a branch office in Singapore. 2. Unless the government raises taxes, the is expected to rise by at least 3%. 3. The government will find it hard to ignore the strong public to the plan. 4. His wife huge debts on over 20 different credit cards. 5. How much is the for a married couple with two children in Hong Kong? 6. Many financial analysts think that the United States is heading for another. 7. In order to enrolment, the school has decided to cut tuition fees by 25%. 8. He a lot of time and money to helping people with learning difficulties. 9. The caused by record unemployment is bankrupting the government. 10. Now that I have started my own business, I can offset the price of my computer against my. 11. Reading many books can your knowledge. 12. suggest that government initiatives to deal with the AIDS problem are not adequate. 13. The referees are in to decide what penalties to give to the fighting players. 14. Studies show that the world's teenagers consume a share of their families' income. 15. The public have made a strong call for to the education system in my country. 3

4 16. The nation of Gambia is a long strip of land which is crossed by a huge river. 17. If mankind fails to the problem of global warming, future generations will face the terrible consequences of our inaction. 18. I only made $25,000 after income tax. 19. The government is running a campaign to try to teenagers not to start smoking. 20. After her husband left her, she was unable to with looking after her five children. 21. As an elite athlete, he follows a strict of eating only the healthiest food. address boost broaden consultation contributes convince cope Critics deductions deficit disproportionate dropped economic downturn narrow opposition personal allowance ran up reform regime revenues welfare burden ANSWERS Listening Comprehension Exercise 1. (b) 2. (c) 3. (c) 4. (b) 5. 16% % 7. 35% 8. 58% 9. (b) 10. (c) 11. (a) months 13. (c) 14. (a) 15. (a) 16. (a) 17. (c) Dialogue Completion Exercise (see article download) Key Words and Expressions Exercise 1. The company has dropped its plans to open a branch office in Singapore. 2. Unless the government raises taxes, the deficit is expected to rise by at least 3%. 3. The government will find it hard to ignore the strong public opposition to the plan. 4. His wife ran up huge debts on over 20 different credit cards. 5. How much is the personal allowance for a married couple with two children in Hong Kong? 6. Many financial analysts think that the United States is heading for another economic downturn. 7. In order to boost enrolment, the school has decided to cut tuition fees by 25%. 4

5 8. He contributes a lot of time and money to helping people with learning difficulties. 9. The welfare burden caused by record unemployment is bankrupting the government. 10. Now that I have started my own business, I can offset the price of my computer against my revenues. 11. Reading many books can broaden your knowledge. 12. Critics suggest that government initiatives to deal with the AIDS problem are not adequate. 13. The referees are in consultation to decide what penalties to give to the fighting players. 14. Studies show that the world's teenagers consume a disproportionate share of their families' income. 15. The public have made a strong call for reform to the education system in my country. 16. The nation of Gambia is a long narrow strip of land which is crossed by a huge river. 17. If mankind fails to address the problem of global warming, future generations will face the terrible consequences of our inaction. 18. I only made $25,000 after income tax deductions. 19. The government is running a campaign to try to convince teenagers not to start smoking. 20. After her husband left her, she was unable to cope with looking after her five children. 21. As an elite athlete, he follows a strict regime of eating only the healthiest food. 5