Suppose the government of an economy announces that

14. Suppose the government of an economy announces that the people will have to pay a general
sales tax of 2% of the selling price when they purchase any goods and services. The
government also launches a series of programmes to make sure that the public understands the
new tax.
Which of the following taxation principles is illustrated by the above measures of the
government?
A. Equality
B. Certainty
C. Convenience
D. Economy
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15. In Hong Kong, citizens are allowed to make their tax payments through the Internet. This
practice is in line with the __________ principle of taxation put forward by Adam Smith.

Session 6.1 – Government Revenue (Direct Tax & Indirect Tax)
94.48.
16. The aim of the Hong Kong government in increasing the proportion of indirect taxes to total
taxation is to
17. Direct taxes differ from indirect taxes in that
18. In July 1994, Mr. Chan bought a new house in Shatin and moved in immediately. In this case,
the taxes that Mr. Chan has to pay for the financial year 94 - 95 are:
(1) Stamp duty
(2) Property tax
(3) Rates
A. (1) and (2) only
B. (1) and (3) only
C. (2) and (3) only
D. (1), (2) and (3)
97.41.
19. The following are the annual income of Peter in Hong Kong in 1996
Type of income Amount ($)
Salaries as a teacher in a secondary school 6,000,000
Interest from local deposits 4,000
Rental income from letting a flat to Japanese 300,000
According to the taxation system of Hong Kong, Peter has to pay
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