11. SAID THAT I HAD TWO MEASURES TO ANNOUNCE. THE SECOND AS THIS. AS FROM MONDAY 17 OCTOBER INTEREST ON HONG KONG DJOLLAR
DEPOSITS MUTH FINANCIAL INSTITUTIONS WILL NO LONGER BE TAXED. THAMS MEANS THAT THERE WILL NO LONGER BE A TAX ADVANTAGE IN HOLDING FOREIGN CURRENCY DEPOSITS OR IN HOLDING HONG KONG DOLLAR DEPOSITS OFFSHORE.
12. AS SAND LAST MONTH, THE GOVERNMENT IS WORRIED ABOUT POSSIBLE SERIOUS EROSION OF PROFITS TAX REVENUE ARISING FROM THE REMOVAL OF INTEREST TAX. WE ARE STILL STUDYING THIS COMPLE -SSUE. MN REMOVING INTEREST TAX ON HONG KONG DOLLAR DEPOSITS WITH FINANC PAL INSTITUTIONS, WE ARE DOING THE MOST THAT IS POSSIBLE, PENDING THE OUTCOME OF OUR STUDY. HOPE TO BE UN A POSITION TO PROPOSE MORE LASTING REFORMS IN THESE FIELDS OF TAXATION IN THE BUDGET NEXT FEBRUARY.
13. THESE MEASURES ARE DESIGNED TO STABILIZE THE EXCHANGE VALUE OF THE HONG KONG DOLLAR, AND THUS TO PROVIDE A CLIMATE FOR GROWING PROSPERITY WITH RESTRAINED INFLATION. THE GOVERNMENT HAS CONFIDENCE IN THE STAPILISED EXCHANGE RATE. SO CAN THE PEOPLE OF HONG KONG. LET US NOW GET ON WITH OUR BUSINESS.
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UNQUETE