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HE THOUGHT THAT THE IMMEDIATE CONCERN WAS TO CREATE A SUITABLE BUSINESS ENVIRONMENT FOR INDUSTRY THROUGH THE PROVISION OF ADEQUATE TRAINING, RESEARCH, TRADE PROMOTION, LAND FORMATION, ADEQUATE TRANSPORTATION AND COMMUNICATION.
+EXPENDITURE ON THESE SERVICES SHOULD NOT BE TREATED AS A KIND OF WELFARE OR RELIEF TO INDUSTRY BUT AS POSITIVE MEASURES TO SUPPLY THE MISSING LINKS EXISTING IN THE FREE MARKET.
+WITHOUT THESE SERVICES, THE PRIVATE SECTOR WOULD NOT BE ABLE TO RESPOND CORRECTLY AND SPEEDILY TO THE RAPID CHANGES IN OUR ECONOMY.
+THUS, THE PROVISION OF THESE SERVICES SERVES PUBLIC AND NOT JUST INDIVIDUAL INTEREST.
+ IT SEEMS TO ME THEREFORE VERY REASONABLE TO DRAW ON PUBLIC RESOURCES TO FINANCE THESE SERVICES.
TURNING TO THE BANDS OF TAXABLE INCOME, DR HUANG QUESTIONED THE FINANCIAL SECRETARY'S ASSERTION THAT THE UNCHANGING WIDTH OF THE TAX BANDS +DOES NOT PUSH THE MIDDLE AND LOWER INCOME TAX PAYERS INTO HIGHER TAX BRACKETS THROUGH THE EFFECTS OF INFLATION, AND THUS CAUSE THEM A LOSS OF REAL PURCHASING POWER.+
HE NOTED THAT A COUPLE WITH A YEARLY INCOME RANGE OF $70 000 IN 1978 WILL HAVE THE IR TAX RATE INCREASED FROM 8.9 PER CENT TO 9.6 PER CENT.
THIS, HE EXPLAINED, WAS CALCULATED ON THE ASSUMPTION THAT $100 IN 1978 WAS EQUAL TO $176 IN 1982 AFTER ALLOWING FOR CHANGES IN CONSUMER PRICES.
EQUALLY, A SINGLE PERSON EARNING THE EQUIVALENT TODAY OF $40 000 A YEAR IN 1978 WOULD HAVE HIS EFFECTIVE TAX RATE INCREASED FROM 6.56 PER CENT TO 7.95 PER CENT.
+THESE INCREASES MAY BE RELATIVELY SLIGHT AND MAY NOT BITE DEEPLY BUT THEY COMPARE UNFAVOURABLY WITH THE RICH MAN WHOSE 15 PER CENT RATE HAS LONG REMAINED UNALTERED, HE SAID.
DR HUANG SAID THE AIRPORT LEVY IN SOUTHEAST ASIA WAS GENERALLY MUCH LOWER THAN THE $100 DEPARTURE TAX PROPOSED BY THE FINANCIAL SECRETARY AND WARNED THAT THIS COULD BE COUNTER- PRODUCTIVE.
+WE MAY GRADUALLY, IF WE ARE NOT CAREFUL, LOSE OUR EDGE OF ATTRACTIVENESS.
+ IT WOULD BE EASY FOR TOUR OPERATORS TO REPLACE HONG KONG IN SOME OF THEIR ITINERARIES BY ONE OF OUR NEIGHBOURS, HE SAID.
DR HUANG WONDERED WHETHER IT WOULD BE POSSIBLE TO TAX THE TRAVELLER ON ARRIVAL +WHEN HE IS EAGER AND EXPECTANT AND LIKELY TO MIND LESS+.
+SINCE IT IS REVENUE INTENDED FOR THE TOURIST ASSOCIATION I WONDER IF WE MIGHT ASK THE ASSOCIATION TO ECONOMISE A LITTLE BY BEING LESS GENEROUS IN ITS FREE HANDOUTS.
+ IT WOULD BE LESS DAMAGING TO GOODWILL, HE ADDED.
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