flats. But once this is done, the Government should not

continue to take excessive care of these people but should

instead concentrate its attention on others who have not been

offered public housing accommodation or those who have no

chance of buying HOS flats.

When the Home Ownership Scheme was first launched, the

very high land value was excluded in determining the selling

groups. At that time, such a policy undoubtedly had a positive

meaning. However, the continued exclusion of the land value

(or part of it) in the selling prices of the HOS flats in the

face of decreased land values and considerable increases in the

real income of the citizens is open to question. Even if the

land value is included, I believe that the price for the HOS

flats are still far below those in the private sector as long

as the profit element is excluded, and they will remain

attractive to the middle and lower income groups. Though the

pricing policy of excluding land value has benefited those who

purchased the HOS flats, it reduces Government revenue and thus

hampers its financial ability to construct more HOS flats.

This in turn reduces the opportunity of those who have not yet

bought HOS flats to purchase one in the future. Therefore, I think the Government should revise the present policy so as to

include at least part of the land value in the selling prices

and use the increased proceeds to finance the construction of

more HOS flats for the middle and lower income groups.

(3) Imposition of duty on non-alcoholic beverages

On the question of increasing revenue, the Financial

Secretary has put forward three reasons for the re-introduction

of the duty on non-alcoholic beverages, the main ones being

that such drinks are a pleasing indulgence and not a necessity

and that the potential yield of revenue from this source is significant. While strongly supporting the principle of taxing

indulgence, I am afraid I do not concur that non-alcoholic

beverages are the best targets for raising revenue.

non-alcoholic drinks such as aerated waters have already become

Many

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