7
Friday, March 2, 1973
"Finally, considerable paper work was involved in that claims for relief were required to be supported by proof of payment. Members of the Life Assurance
Association of Hong Kong co-operated fully in supplying forms to their policy
holders to ascertain details. However, the bulk of life assurance business is
written by non-resident eorporations and most of the investment schemes are
run by these corporations which resulted in delay in the processing of claims.
"These then were the considerations underlying my decision to propose
in the budget speech that the selective allowance of insurance relief should
be abolished, but as part of a package deal, ao very few taxpayers indeed will
be worse off. The fact is that it is questionable whether insurance relief
has a place in any tax system for I do not see why fiscal help should be given
to sell a particular form of savings. This is particularly so where the
schedular rates and the low standard rate provide ample incentive for thrift
anyway.
1
1