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groups to contribute their appropriate share to the revenue.
In the light of the above arguments, the majority of the
Unofficial Members feel that, while they agree that the present
level of basic allowance should be maintained, Government should
consider increasing the supplementary allowance for a single person
to a level between $3,500 and $4,000, instead of $2,500, and that for a married couple to between $7,000 and $8,000 instead of $5,000.
If need be, the claw-back could be increased to a slightly higher percentage of, say, 25%. This percentage still compares favourably
with the claw-back of 100% for the Lower Income Relief applicable
in 1970/71.
Sir, we realise, of course, the most important factor in deciding the quantum of a tax-free allowance is its effect on revenue
yield. We also realize that to fix its level purely on the current cost of living could give rise to serious and complicated problems. However, we hope in considering our suggestion, that Government will bear in mind the weight of indirect taxation on the middle and lower
income groups.
Sir, with these remarks, I support the Motion.