WEDNESDAY, MARCH 29, 1978
3.
IT WOULD SEEM LOGICAL IN THE CIRCUMSTANCES, HE SAID, FOR THE GOVERNMENT TO APPROACH THE CHINESE AUTHORITIES TO NEGOTIATE FOR THE INSTALLATION OF A SECOND SET OF PIPELINES TO, SAY, DOUBLE THE QUANTITY OF SUPPLY. TOGETHER WITH THE COMPLETION OF THE HIGH ISLAND WATER SCHEME, THIS WILL SOLVE OUR WATER PROBLEM FOR THE NEXT TEN YEARS.
+WITH THE PRESENT EXCELLENT SINO-BRITISH RELATIONS
I BELIEVE, AS MANY PEOPLE DO, THAT OUR REQUEST FOR MORE WATER FROM THE EAST RIVER WILL RECEIVE A VERY SYMPATHETIC AND FAVOURABLE RESPONSE BY THE CHINESE AUTHORITIES, + HE SAID.
SIR SZE-YUEN COMMENTED ON TWO OF THE SEVEN REVENUE PROPOSALS.
HE DID NOT AGREE WITH THE LOGIC OF THE PROPOSED PENALTY ON THOSE WHO DEFAULT ON THEIR PROVISIONAL TAX PAYMENT.
MAKING THE SECOND INSTALMENT DUE AUTOMATICALLY IF THE FIRST INSTALMENT IS NOT PAID ON THE DUE DATE +WILL AGAIN NOT MEET THE ORIGINAL OBJECTION THAT TAX PAYMENTS WOULD HAVE TO BE MADE BEFORE EARNINGS OR PROFITS HAD BEEN RECEIVED, HE SAID.
HE SAID THE PRESENT PENALTY OF A 5 PER CENT SURCHARGE ON THOSE WHO FAIL TO PAY ANY INSTALMENT ON THE DUE DATE IS BADLY DESIGNED. THE TAX DEFAULTER TENDS TO DELAY PAYMENT BECAUSE THERE IS NO FURTHER PENALTY TO PROMPT HIN.
HE SUGGESTED THAT A BETTER WAY TO ENCOURAGE PAYMENT IS TO INTRODUCE A SURCHARGE WHICH PROGRESSIVELY INCREASES WITH THE TIME OF DELAY.
AS TO THE INCREASE IN EXCISE DUTY ON IMPORTED CIGARETTES SIR SZE-YUEN SAID THE UNOFFICIALS WERE VERY PLEASED THAT LOCAL: CIGARETTE MANUFACTURERS, WHO HAD EARLIER APPEALED THROUGH UMELCO TO THE GOVERNMENT, WOULD NOW BE ABLE TO DEVELOP A GREATER VOLUME OF SALES AND REGAIN SOME OF THEIR SHARE IN THE MARKET THEY LOST IN RECENT YEARS.
HE WONDERED HOWEVER WHY THE FINANCIAL SECRETARY HAD NOT FOLLOWED A PRINCIPLE PUT FORWARD BY HIS PREDECESSOR IN THE 1966 BUDGET DEBATE OF REVISING THE DUTY ON TOBACCO BY MULTIPLES OF TEN CENTS.
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IN THIS INSTANCE, THE FINANCIAL SECRETARY MENTIONED THAT THE INCREASE IN DUTY WOULD ONLY RAISE THE PRICE OF A PACKET OF 20 IMPORTED CIGARETTES BY SIX CENTS. RETAIL PRICES HOWEVER HAVE BEEN INCREASED BY MORE THAN SIX CENTS SO THAT THE GOVERNMENT WILL RECEIVE ABOUT $7 MILLION LESS IN REVENUE PER ANNUM WHILE THE MANUFACTURES AND DEALERS WILL OBTAIN A WINDFALL OF THE SAME AMOUNT.
THIS IS RATHER UNFORTUNATE HE SAID AS THE GOVERNMENT PROVIDED AN UNNECESSARY OPPORTUNITY FOR CONSUMER EXPLOITATION.
/REFERRING TO