THURSDAY, APRIL 14, 1983.
6
+PROFITS TAX INCREASE WOULD BE IRRESPONSIBLE+
*****
AN INCREASE IN PROFITS TAX TODAY WOULD BE IRRESPONSIBLE AND PROBABLY FOOLISH IN THE EXTREME, THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE, SAID IN THE LEGISLATIVE COUNCIL TODAY.
BUT HE ADDED: +THIS DOES NOT MEAN THAT IN OTHER CIRCUMSTANCES
INDEED. IT IN FUTURE YEARS I RULE OUT A MODERATE INCREASE. IS ARGUABLE THAT ONLY THE WINDFALL REVENUE FROM LAND SALES IN THE PAST SIX YEARS HAS PREVENTED SUCH INCREASES BEFORE NOW.+
MR BREMRIDGE WAS REPLYING TO UNOFFICIAL MEMBERS WHO HAD ADVOCATED INCREASED PROFITS TAX.
BUT HE STRESSED THAT IF AN INCREASE BECAME NECESSARY, IT CERTAINLY WOULD NOT FALL MORE HEAVILY ON THOSE WHO MADE LARGER PROFITS.
HE POINTED OUT THAT ABOUT 22 000 LIMITED LIABILITY COMPANIES PLUS 17 500 UNINCORPORATED BUSINESSES WOULD PAY PROFITS TAX NEXT FINANCIAL YEAR, WITH AN ESTIMATED 31 000 PEOPLE INVOLVED IN PAYMENTS BY THE UNINCORPORATED SECTOR.
FURTHERMORE, AN ESTIMATED 55 000 PEOPLE WOULD ELECT TO TRANSFER THEIR BUSINESS PROFITS FOR PERSONAL ASSESSMENT, THUS MAKING A FURTHER 86 000 PEOPLE INVOLVED IN THESE PAYMENTS IN ADDITION TO LIMITED COMPANIES, MR BREMRIDGE SAID.
HE DESCRIBED THESE PEOPLE AS THE ENTREPRENEURIAL DRIVING FORCE OF HONG KONG, CONTRIBUTING TO THE CREATION OF COMMUNITY WEALTH AND PROVIDING EMPLOYMENT FOR THE LABOUR FORCE.+
+NOT JUST THE LARGE COMPANIES BUT EVERY LITTLE RESTAURANT, EVERY BACKYARD WORKSHOP AND EVEN MANY FIXED STAND HAWKERS ARE INVOLVED, ALREADY THEY PAY 64 PER CENT OF TOTAL DIRECT TAXATION,+ MR BREMRIDGE POINTED OUT.
TURNING TO ARGUMENTS FOR A HIGHER SALARIES TAX, HE SAID, +SETTING ASIDE ESSENTIAL QUESTIONS OF MAINTENANCE OF CONFIDENCE AND OF LIKELY RIPPLE EFFECTS, AND ACCEPTING THAT A MODERATE INCREASE MAY BE INDICATED IN LATER YEARS, I SCORN PERVERSE ACCUSATIONS THAT I NOW PROPOSE THE RAISING OF TAXES ON THE POOR IN THE INTERESTS OF THE RICH. THIS IS RUBBISH.+
MR BREMRIDGE STATED THAT THE LOGIC BEHIND THE VARIOUS INCREASES PROPOSED IN INDIRECT TAXATION OWED NOTHING TO CAPRICIOUSNESS.
TO THE CONTRARY AND GIVEN THE OVERALL SITUATION, HE HAD SET OUT TO LIMIT THE BURDENS OF THE LESS WELL PAID AS MUCH AS POSSIBLE, BY TRYING TO GIVE PEOPLE A CHOICE, MR BREMRIDGE SAID.
+1 REGRET THAT SOME CRITICS DO NOT APPRECIATE FREE CHOICES. IT IS ALSO A MAJOR CONCERN THAT OUR DEPENDENCE ON DIRECT TAXES HAS BECOME SO PRONOUNCED AT A TIME WHEN PROFITS AND SALARIES ARE NOT BUOYANT, HE SAID.
THIS TREND,