Page...........
.3.
!
2
(e)
The future SARG would have to cut expenditure
to cool down the economy and would not be able
to
maintain
welfare and
public
works
programmes.
TAX STRATEGIES
On taxation, Luo said:
(a)
The 1 per cent rise in profits tax would be
tolerable if the CPG had some guarantee that
further tax rises would not be required in the
future to cover the rising costs of the
welfare and infrastructural programmes;
and
Es hes
give
Some pretty
broad hints
Had they won't
(6)
If further tax rises were announced in the
1993 Budget, the JLG would be forced to put
this issue on its agenda.
4.
He predicted that the Financial Secretary would
respond to public criticisms:
(a) By rasing the salaries tax threshold; but
(b) By sticking to the increases in profits tax
and rates.
CONFIDENTIAL