The Chief Secretary presided at the sitting during the absence of the President.
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MR. TAI:
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Sir, I am indeed impressed by the forecast
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ber cant growth rate of GDP for 488 of 5 and the unem-
16.5 per cent
by cent
15.5 pir cent,
ployment rate of 1.8% which clearly indicates that the economy of Hong Kong remains viable and prosperous. The first topic I want to draw your attention to is the tax concession. The proposals for decreasing the standard rate from 16 to 15 lowering the initial tax rate, and a more gradual progression of the marginal tax rate will certainly be much welcomed by all sectors of the community
in Hong Kong. However, according to Appendix F(3) of the speech of the Financial Secretary, it is learned that only 53,000 of the 700,000 eligible tax payers pay at the standard rate
15.5 per cent
ber cent of, but contribute 56% of the total tax yield. This tax burden concentrates on a small number of tax payers. This situation
bertable
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is negotiation as the society of Hong Kong
owes so much to so few. Backed by the accumulated surplus in budgeting for the last three years, the Administration should give consideration to the possibility of granting er increment in the personal allowance and a tax concession to those in
the middle-income bracket as an encouragement for their diligence and contribution to the economy of Hong Kong. Regarding personal allowances, as mentioned by the Financial Secretary, I would like to point out that the concession in respect of the working wife allowance, child allowance, and dep-
Parint endant allowance, can hardly improve the living
standard of the middle-income taxpayer