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30.

These are very reasonable principles, but I feel that in studying the imposition of new taxation measures, there is one point that must be borne in mind, and that is any new tax should never increase the financial burden

to avoid of those in the middle and lower strata less Contradition with

this go against the spirit of imposing tax and lead to a greater gap between the poor

and the rich.

Tat

بصلة

At the last Budget debate, I asked that the

shoved Government give very careful thought before imposing the idea of a sales tax. Today I still stand by the opinion that it is highly inappropriate to impose a sales tax in Hong Kong. Introducing such a tax in Hong Kong at this time would definately fuel inflation and thereby will affect adversely those in the middle and lower-income groups. It would widen the gap between the rich and the poor, and under the circumstances when social welfare facil-

not up to our expectatio, ities are still far from satisfactory such

violate at hand

the principle of tan attacks would not be fair. ancipie Hong Kong still has a reputation of being-a Shoppers' Paradise. [The imposition of a saleṣ

"not only "jeopardise Home King's reputation as o tax would adversely affect that and it would' Paradise but would also reduce the number and the purchasing power of

visitors to Hong Kong.

Ian taritim.

shoppers

That will also affect

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indirectly Hong Kong's position as a finan- cial and trading centre, and many investors, especially foreign investors, would be rel- uctant to invest in Hong Kong. We are in the best of times at the moment with such a large

consider surplus, Is it necessary to be talking about imposing a sales tax? I think that the Government should consult very widely and give this very careful thought before a wise

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