11.2.87
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5.
Like my predecessors, I am firmly convinced that
we should endeavour to maintain a low and predictable tax
regime. Hong Kong's reputation as a place in which
business can be conducted profitably depends to a large
extent upon our keeping tax rates low.
I can,
nevertheless, see merit in at least considering different
mixes of tax sources from time to time. I shall say more
about this later.
6.
I believe that as our wealth grows, it is
entirely reasonable and natural that our community should
expect improvements in public services.
Nevertheless, if
the objective of maintaining low taxation is to be
achieved, the growth in the expenditure on those services
must stay within, rather than run ahead of, the expansion
of our economy. Even in the improved situation that we
are now experiencing, resources remain limited and choices.
must be made. We must not allow the public sector to
become a millstone around the neck of the economy,
something that has happened in many other places.
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