The Hong Kong government is considering the introduction of a tax on internet use which would charge users for each minute they are on-line, according to a report today in the South China Morning Post.
The Hong Kong government is considering the introduction of a tax on internet use which would charge users for each minute they are on-line, according to a report today in the South China Morning Post based on an article which appeared in a local Chinese-language paper, the Hong Kong Globe. The South China Morning Post observes that such a tax might threaten the continued growth of e-commerce in the territory.

The initial rate for the tax is expected to be HK$0.01 per minute (around £0.05 per hour), generating an estimated revenue of around HK$150 million (£13 million) per year for the government. The figure is described as being only a test figure, which will be raised if the model revenue works. It could be introduced as early as 3rd March, the beginning of the next financial year.

The tax is expected to be easy to administer because all internet users in Hong Kong presently pay a “public non-exclusive telecom (PNET) surcharge” of 2.3 cents per minute to Pacific Century CyberWorks, irrespective of which ISP they use, in addition to telephone and ISP costs.

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