1.

2

4

5

poor. The Government must be clear on that.

necessities must be exempt from the sales tax.

For instance,

Sales/tax can

2)

be levied on luxuries but the mere mention of these things

reminds us of the innumerable problems involved and there may

be evasions.

6

7 Thirdly, procedure.

What about tourists? Investigations and

how do we set the right level and how do we

8

documents

9

prevent evasion?

10

11

12

13

14

16

etion,

[wi

What other

(The last problem is that it may fuel infl

taxes can we reduce as a result of increasing indirect taxes?

Sales tax increases the tax burden of

these questions have to be answered

the public, but well there be increast in expenditure which will benefit

the masses?

any

15 Sir, in stabilising the tax system and maintaining fairness, I

think we can study further the possibilities of having a

sales tax, but not on the retail level. I donot think we

should rule it out altogether but the questions that I have

raised are for his consideration.

17

18

19

20

21

Je 22

23

would

Sir, in 198283 and 1983 84 Budget Debates, I asked the then

Financial Secretarey, Sir John Bremridge, to implement

separate taxation. He could only give me a maple-leaf that 24 there would be such in the next year; there would be separate .

But I'd like to congratulate Mr. Piers Jacobs sc 26 because not only has he brought on a surplus budget, but p 27 probably for the first time, acknowledged in public the

advantages of having a separate taxation. Although he is not

29 running for election next year but he certainly merits our

25

28

assessment.

30

credit.

31

32

I support the motion, Sir.

33

34

HE

Dr. Henrietta IRT

35

36 Dr. Henrietta IP: Sir, through studying the Budget and Draft

1

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