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THURSDAY, APRIL 3, 1975
ON DR. CHUNG'S PROPOSAL FOR A ONE PER CENT TURNOVER TAX. MR. HADDON-CAVE SAID THIS CAME AS A SURPRISE. HE RULED IT OUT ON THE BASIS THAT THE ADMINISTRATIVE PROBLEMS WOULD BE CONSIDERABLE AND THE CUMULATIVE EFFECT OF SUCH A TAX ON THE COST OF LIVING AND ON THE COMPETITIVENESS OF HONG KONG EXPORTS WOULD DE +DISASTROUS.+
HE ALSO RULED OUT THE POSSIBILITY OF REINTRODUCING DEPENDENT PARENTS ALLOWANCE WHICH HE BAD CONSIDERED DUT REJECTED DECAUSE
WE SIMPLY CANNOT AFFORD THE LOSS OF REVENUE.+
HOWEVER, MR. HADDON-CAVE, AGREED WITH THE HON, OSWALD CHEUNG THAT DETTING DUTY SHOULD PLAY A LARGER ROLE IN HONG KONG'S FISCAL AFFAIRS, AND HE HOPED THAT THE SCOPE OF THE DETTING ORDINACE COULD DE GRADUALLY EXTENDED TO EMBRACE, ONE WAY OR ANOTHER, FIELDS OTHER THAN HORSE RACING.
HE ALSO SYMPATHISED WITH THE HON, HILTON CHEONG-LEEN'S SUGGESTION THAT ENTERTAINMENT TAX SHOULD BE EXTENDED TO PROFESSIONAL FOOTBALL MATCHES. HE SAID HE WOULD RECONSIDER THIS IF THE DIFFICULTY IN DEFINING PROFESSIONAL FOOTBALL, AS OPPOSED TO AMATUER SPORT, COULD DE OVERCOME.
THE FINANCIAL SECRETARY SHARED MR. LI FOOK-WO'S SENSE OF SHOCK OVER THE INCREASE IN ARREARS OF REVENUE. THIS DETERIORATION, HE SAID, AROSE MAINLY FROM A SUBSTANTIAL INCREASE IN THE ARREARS FOR EARNINGS AND PROFITS TAXES FROM $29 MILLION IN JUNE 1973 IN RESPECT OF 1972/73 TO $69 MILLION IN JUNE 1974 IN RESPECT OF 1973/74.
THE COMMISSIONER FOR INLAND REVENUE HAD PUT FORWARD PLANS TO REDUCE THESE ARREARS. BUT THE FACT OF THE MATTER IS THAT OVER THE LAST TWO YEARS, THE PROPORTION OF ASSESSED TAX NOT PAID ON THE DUE DATE HAS RISEN- AND GIVEN THE DIFFICULTIES OF 1974, I DOUBT IF WE SHALL SEE MUCH IMPROVEMENT IN THE POSITION AT THE CLOSE OF 1974/75, PARTICULARLY IN RESPECT OF PROFITS AND PROPERTY TAXES,+ HE ADDED.
MR. HADDON-CAVE NOTED THAT WITH THE CONCESSIONS IN THE MACAU TERMINAL PASSENGER CHARGE AND THE SURCHARGE ON PEAK-HOUR MOVEMENTS AT KAI TAK AIRPORT, THE ESTIMATED DEFICIT OF $429 MILLION IN 1975/76 WOULD RISE TO 0431 MILLION.
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