Abstract This study is designed to provide a broad range of proposed GST in Hong Kong. The provisions of GST and other taxation laws applicable to taxation that have filed in chapter 1 to 7 are discussed in details. This study also explained the provisions of the IRD that relate to the Goods and Services Tax in Hong Kong. This study, generally, criticised the proposed Goods and Services Tax in Hong Kong. Introduction Tax administration of a particular country is a significant concern as the issue of development solely depends upon the fact how efficient and working the tax mechanism of a particular country. Countries of the world have different taxation policies in the light of their particular economic structure and socio-economic consideration. “Taxable capacity of a country depends upon the sum of profits, wages and rents” (Shoup 1960, p.192). While discussing about the taxation system of a Particular country, GST or Goods and Services Tax is an important topic. Different countries of the world have introduced the system for developing their economic advancement. Developed countries are making the example that Goods and Services tax is tremendously helping to boost their economies. Hong Kong is an important place in the Asia–pacific region for trade and commerce due to its laissez faire policy and infra-structure development. As it is considered the hub of trade and commerce, foreign investors find Hong Kong for developing their industrial and commercial relations worldwide. One of the reasons for choosing Hong Kong as an ideal place for businesses is its simplified taxation system. The existing tax mechanism of the country does not levy Goods and services tax. As the country has faced a budget deficit and economic disturbance in the recent years, it has decided to introduce Goods and Services tax (GST) in the taxation system. To this end, Government has proposed an enactment for the introduction of the said instrument entitled Arrangement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income . The said legislation was signed on August 21, 2006 and took effect (for Hong Kong residents) from April 1, 2007 (Stender 2006, p.1). Problem Statement As a part of its tax reform initiative, Hong Kong has proposed this tax legislation. After forming a committee, the Government has entrusted them with the responsibility of drafting a proposed tax instrument. Accordingly, the committee has prepared a draft copy of the said tax legislation and subsequently Government has arranged the means for the publication of it with an ultimate intention of giving this into effect. But, the instrument is crippled with numerous problems. It is seemed that while enacting this draft legislation, committee did not consider the need and interest of the people; rather it was more devoted in developing the ways and means for generating more revenues in public fund. The provisions as drafted in this instrument articulate that all the goods for consumption and necessary services would be subject to tax, i.e. every commodity used in the day to day life of the citizenry are levied. Again, the exports and imports goods have also been levied. This hinges on the development of businesses and investment. The rate