e
interest is an effective means to speculation in the foreign
exchange market. Instead, this will only cause disturbances to foreign
investors and lead to the problem of excessive savings in listed
thus
Lond to 4 companies and private provident funds, that is it may have counter
13
5
effects.
6
7
8
.10
9
昧
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
NP
30
31
32
33
34
35
36
Secondly, since the year is to be volatile and uncertain, we need a reliable long-term strategy to maintain the financial income necessary
for our community. So we can consider enlarging our indirect tax
should be, we should only tax the luxury. base, but the principle attached should-be we should not increase the financial burden for the general public.
pe
items and
Thirdly, I welcome the Financial Secretary's proposal of giving more supporting services to the industry in his Budget, and I also welcome the proposal of reducing our corporate tax rate from 18 per cent to 17 per cent. But we know that the investment on industrial facilities, such as plants and machinery has already increased from 0.2 per cent of 85 to 27.3 per cent in 87, but it is estimated that this will again drop to below per cent in the coming year. That is why I think that while the Government is supporting industry, it should also utilise the strength of our financial resources to provide more
incentives to our investors. Concessions such as a depreciation
tax allowance for the machinery and more supporting services to the
imported industrialists so that they can have retain machinery are means which are helpful to maintain a high growth rate of long-term industrial investment. These means would also help our new industry
Thi
not daily. we czs sitils.
to move towards automation and diversification and entance industrial productivity.
?
Fourthly, is the new Budget adequate in reflecting the actual need in the area of law and order, I think on this important question, we really need to do something for the future. I dont think we have serious problems in law and order at present, but the expenditure on social security only accounts for 8.9 per cent of the entire expenditure which is only 1 per cent of the average income of a Hong Kong citizen. I think that the financial commitment has not
the
to the social security.
adequately reflected importance of the police