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grassroots. Mr Macleod described taxation policy itself as not complicated.
It was complicated as well as more technical only when it
came to details relating to levying tax.
The present Financial Secretary, Sir Piers Jacobs, had during his tenure repeatedly stressed that the Government would introduce more indirect taxes, but it seemed that they were never put into practice. Asserting that no new tax would be welcomed by anyone, Mr Macleod said the Government was unable to widen the base of indirect taxation in the past couple of years because of high inflation. However, he denied that the Government was merely adopting a wait-and-see attitude without concrete action. He emphasised that the Government was just waiting for the right time to come.
It was
On the other
Although Six Piers strongly emphasised the importance of indirect taxes, a large part of goverment revenue, in the. past years, still depended on direct taxes. Mr Macleod said this was inevitable. because at a time when the economy performed well, the revenue generated from direct taxes would naturally be increased. hand, revenue from direct taxes would decrease during economic recession, which would not be an appropriate time to introduce indirect taxes. That was why direct taxes still constituted a major part of government revenue at the present time.
Mr Macleod, who came from the administrative service and trade-related departments, admitted that he was a little short of experience in financial matters. With the Commissioner of Banking, Anthony Nicolle, leaving his post next month, which would be taken over by David Carse of the Bank of England, and the Secretary for Monetary Affairs, David Nendick, retiring next year, Mr Macleod and other senior officials at the Monetary Affairs Branch would be new hands at the posts.
However, Mr Macleod said he was not worried that there would be a question of discontinuity of work at the Monetary Affairs Branch. The reason was that the Director of the Exchange Fund Office, Joseph Yam, and other officials at the Branch were all very experienced.
The change of staff at the Monetary Affairs Branch
The Government planned to issue two to three-year bonds to meet future infrastructural developments. Mr Macleod expected that the proposal would be passed during the current Lagco session. plans to issue bonds that straddled 1997, Mr Macleod contended that
On KCRC's such a move would boost the corporation's image. it was still difficult to issue bonds straddling 1997 at the present
To the HK Government, stage.
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Media Research Sub-Division
Goverment Information Services
23 March 1992
TOTY