CONGELMAAL
- 28
Suggested Solution
000 GOVT HOUSE HK
'89 10-26 11:55
Article
Art. 197
Art. 109
Problem
Its wording can be further improved to make it beyond doubt that the effects of the previous low tax policy are one of the Factors which should be taken into account.
The first para. of Art. 199 is not provided for in the JD. Its requirement to prescribe the monetary and financial systems by law not only goes beyond the requirement in the second para. of this Art., but is not consistent with the present basis of HK's financial system which is regulated, not precribed, by law.
Proposed formulation:
It
"The HKSAR shall practise an independent taxation system. shall on its own enact laws concerning types of taxes, tax rates, tax reductions and exemptions and other matters of taxation. In deciding upon its taxation policies, the HKSAR shall take account of the effects of the low tax policy of previous years."
It is suggested that para. 1 be deleted.
Remarks
Channels:
Governor's visit
Legal experts meeting BLDC/BLCC interlocutors
Actions taken:
This was raised by the Governor with Zhou Nan and Lu Ping. The new text has not yet been handed over.
Channels :
Zheng Weirong
BLDC/BLCC interlocutors Legal experts meeting
Actions taken :
This is a new point.
CONFIDENTIAL