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WEDNESDAY, MARCH 19, 1975
DR. CHUNG SUGGESTED TWO POSSIBLE MEANS OF RAISING ADDITIONAL REVENUE BY INSTITUTING A TURNOVER TAX OF ONE PER CENT WHICH PRESUMABLY COULD YIELD SOME $2,000 MILLION A YEAR, AND BY SETTING UP A COMPULSORY CENTRAL PROVIDENT FUND WHICH COULD GENERATE ABOUT $500 MILLION A YEAR BASED ON CONTRIBUTIONS OF FIVE PER CENT FROM EMPLOYERS.
ON TURNOVER TAX, HE NOTED THAT ABOUT 75 PER CENT OF THE 200,000 BUSINESSES REGISTERED IN HONG KONG MADE EXTENSIVE USE OF THE CITY'S COMMERCIAL AND INDUSTRIAL INFRASTRUCTURE WHILE PAYING NO DIRECT TAXATION AND ONLY MINIMAL INDIRECT TAXES. *I THINK IT IS TIME FOR THESE FIRMS TO CONTRIBUTE A FAIR SHARE OF OUR PUBLIC EXPENDITURE, HE SAID.
THERE WERE MANY OTHER WAYS IN WHICH ADDITIONAL FUNDS COULD BE RAISED, HE ADDED, AND HE HOPED THAT THE TERMS OF REFERENCE FOR THE PROPOSED INLAND REVENUE ORDINANCE REVIEW COMMITTEE WOULD DE SUFFICIENTLY WIDE AND COMPREHENSIVE FOR THIS PURPOSE.
HE AGREED THAT THE LOW TAXATION STRUCTURE IN HONG KONG WAS AN ATTRACTION TO FOREIGN INVESTORS, DUT HE DID NOT BELIEVE THAT INCREASED TAXATION, WITHIN REASÕNADLE LIMITS, WOULD DETER THEM FROM COMING HERE AS THERE WERE OTHER EQUALLY IMPORTANT INCENTIVES, SUCH AS A HIGHLY PRODUCTIVE LADOUR FORCE, INDUSTRIAL PEACE, GOOD SUPPORTING INDUSTRIES AND SO ON.
ON THE PROPOSED INCREASE IN WATER CHARGES, DR. CHUNG SAID THE UNOFFICIALS SUPPORTED THE PROPOSED DIFFERENTIAL PRICING SYSTEM FOR DOMESTIC CONSUMERS AS IT WAS A SOUND ONE.
HE WAS CONCERNED, HOWEVER, THAT THERE SHOULD BE NO UNDUE HARDSHIP SUCH AS IN THE CASE OF SEVERAL FAMILIES OCCUPYING THE SAME FLAT WITH ONE HETER. IT WAS NOT UNCOMMON FOR FOUR OR FIVE FAMILIES TO SHARE THE SAME FLAT AND CONSEQUENTLY THE LEVEL OF CONSUMPTION HOULD BE HIGH AND COULD REACH THE THIRD LEVEL FORCING THEM TO PAY THE HIGHEST LEVEL OF 86 PER THOUSAND GALLONS WHEREAS THEY MAY NOT BE ADLE TO AFFORD IT, HE SAID.
+THEREFORE, THERE WILL DE SOME HARDSHIP CASES OF THIS NATURE
TO
AND THE UNOFFICIAL MEMBERS WOULD LIKE THE GOVER OOK MORE
CLOSELY INTO THIS MATTER TO SEE WHAT PRACTICAL MEANS COULD DE DEVISED TO ALLEVIATE THIS UNFAIR SITUATION WHICH IS CONTRARY TO THE SPIRIT OF THE PROPOSED DIFFERENTIAL PRICING SYSTEM.+
HE ALSO ASKED FOR AN ASSURANCE THAT THE 2,700 GALLONS OF FREE SUPPLY AND THE 14,000-GALLON LIMIT FOR THE LOWER CHARGE OF $3 PER THOUSAND GALLONS WOULD DE MULTIPLIED BY THE NUMBER OF INDIVIDUAL FLATS FOR COMPUTING WATER CHARGES IN A MULTI-STOREY BUILDING USING ONE COMMON WATER METER FOR ALL THE FLATS.
IN THE CASE OF NON-DOMESTIC WATER USERS, PARTICULARLY INDUSTRY, DR. CHUNG FELT THAT THE FINANCIAL SECRETARY HAD NOT GIVEN A FAIR COMPARISON BETWEEN AN INDUSTRIAL CONSUMER AND A DOMESTIC CONSUMER.
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THE LATTER