10
6
сер
can be achieved. Moreover, the introduction of a sales tax will definitely affect the tourist industry and increase the administrative cost of the Government and businessmen.
Sir, in the philosophy of economics, sales tax is
A billionaire and a beggar alike will have to pay an equal tax when they purchase the same dutiable commodity. At first the tax rate may be set at a low.
bo cent level such as below 5 However, it will not too difficult for those in power to raise the level gradually year after year to
considered as a kind of regressive taxation.
Rev Lent
Percent
per conc
6 per cat
Just to think
In fact,
Eventually it
per cent then 7, and then to 8, 9% and even, 10% or more. that may happen is worrying and disturbing enough. experience in other countries tells us that sales tax is just like a monster. Once it is born, it will go out for preys. will grow into a mammoth and do great harm to this world. urge that the Government be absolutely careful in handling this
It issue and allow more time for discussion and consultation. should definitely not be implemented in a hurry next year.
Hence I
Sir, having spoken on taxation, I now turn to the subject of public expenditure.
During the budget debate last year, I spoke at length on budgetary guidelines. It is a pity that the Government did not make any definite response. In brief, in order to attain a balanced revenue and expenditure, to avoid raising loans, to maintain low tax rates and to keep public expenditure at a low level, the Government has established a set of budgetary guidelines (which can be traced back to the years when Sir Philip Haddon-Cave was the Financial Secretary) with a view to exercising certain control on public revenue and expenditure.
I have drawn the Government's attention to the guideline of recurrent expenditure not exceeding 65% of total expenditure". As we all know, salaries and staff-related
expenditure form a major part of the Government's recurrent
expenditure; however, in recent years, the usual percentage of 65i Conv | has been moving upwards consistently, 81 in 87-88 and up to 82.5 per cen