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But I hope that we will be able to review the tax

Zveret now and then

allowance po prepesed for our working wives so that

it can catch up with the inflation rate, and attain a reasonable level.

As for the relationship between direct tax and indirect tax, first of all, we must acknowledge one

basic principle of taxation: that is, redistribution

of our resources so that we can have a balanced

allocation of our resources, in particular a lessening

of the financial burden for people in the lower stratum.

خاض معه

Direct tax like inhome tax profit Fox and property tax, have the function of

For buling pace. There will be greated tax landen for higher Duncane class. Indirecting Indirect tax is borne by everyone. If we look at it from

Yet

o resprices.

squally

محمد

increas

the point of social equity, it is inappropriate to indirect tax. It is true that indirect tax is more

avoid of stable and it can supplement the revenue laws resulting

dining economic recession. from a reduction of revenue from direct tax At the same time, the imposition of indirect tax on commodities such as tobacco and alcohol, helps to bring down the sales volume of cigarettes and wine and this may have an

So Jails educational effect, but it does not help to achieve a more- balanced distribution of wealth. The Financial Secretary mentioned the levying of a sales tax. I must voice my strong objection to the proposal, not only from the point. of view of social equity but also from the angle of economic growth on the whole. Sales tax will mean more and hither production

thus weaken the operational/costs and mean less competitiveness for

We cannot overlook, this long-term impact.

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Rosher cost of materials

27 Hong Kong Hong Kong is a famous low taxrate free port

and shopper's paradise. If we have to raise the price of our commodities and increase the inflation rate, the reputation of our low taxrate port and shopper's paradise

affected will certainly be lost. As I said, indirect tax will

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equally.

be borne by everyone; whether it is to be raised from the wholesale or retail level, it will add to the burden of the lower middle stratum, in particular if we are levying a sales tax for ne

ctaily.

for necessities. Of course, we need

to have the support of our general public before this can

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