++
19
+
Thursday, March 14, 1974
As regards interest tax, Mr.Sayer was of the opinion that
interest tax on foreign currency deposits should be abolished to make
way for effective panticipation by licensed banks in Hong Kong.
He saw in this four distinct advantages for Hong Kong:-
*
Hong Kong would be able to offer a service for
which there is undoubtedly a demand;
Depositors would be protected as the funds would
be deposited with institutions who are obliged to observe
rules and standards laid down in Hong Kong's banking ordinance;
The foriegn currency deposits are largely term deposits that is they are deposited for fixed periods of time and consequently could and
would be available to re-cycle into Hong Kong's
economy, and
A valuable source of revenue would arise as there
should be profit in the business which would be
taxable.
"I would rather see the money," Mr. Sayer remarked, "under the
control of institutions here and providing resources and revenue for our
community than being remitted out of Hong Kong where we can reap none of
the benefits I have mentioned."
Turning to the proposed tax increase and widening of the scope of
taxation, he hoped that when reviewing these matters "care will be taken
not to drive away investors and industralists and those who are accustomed
to using Hong Kong as their centre of operations" as they have a vital role
to play in the development of Hong Kong's economy.
/He thought .......
Page 20Page 21