SECRET
71
12.2.87 (2)
TAXATION OF MARRIED WOMEN
135.
I turn now to the difficult and sensitive
subject of separate taxation for married women.
It is
complicated, as my predecessor explained in his 1983
Budget Speech (54).
Members of this Council in recent
weeks have raised a number of questions, and the media
have also taken an active interest.
I believe, however,
that my proposed personal tax concessions, which benefit
all rather than any particular group of salaries
taxpayers, rate a higher priority and will be more widely
acceptable. Members will recall that the cost of
introducing separate taxation for married women would be
some $400 million per annum at 1986-87 levels of income.
And the cost of administering the system could amount to
$17 million (55). It seems to me that even if the Revenue
were able to forgo a further sum of this magnitude, it
would be preferable that the benefit should be spread
amongst personal taxpayers generally rather than be
enjoyed by a select group. I have no doubt I shall hear
more on this subject and look forward to Members' views
with interest. I commend to them a careful study of the
1983 Budget Speech, which I suggest should be the starting
point for any further debate.
(54) (55)
1983 Budget Speech, paragraph 137.
Written reply by the Financial Secretary to a question asked by the Hon Mrs Rita Fan at the sitting of Legislative Council on 14 January 1987.
SECRET