.EDNESDAY, DECEMBER 21, 1983
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+THIS HAS BEEN CONSIDERED BY THE GOVERNMENT TO BE SOMEWHAT OVER-DRAMATISED. THE EFFECT UNDER OUR PRESENT SYSTEM OF LOW TAX RATE AND 'FAMILY UNIT' OF ASSESSMENT IS NOT AS GREAT AS IN THOSE COUNTRIES WHICH ADOPT SEPARATE TAXATION, HE NOTED,
HE FURTHER POINTED OUT THAT TAX ADVANTAGE WOULD NOT ARISE IN ALL CASES. IN THE CASE OF HIGH INCOME COUPLES, THE CEILING IS THE STANDARD RATE OF 15 PER CENT, SEPARATE TAXATION OR OTHERWISE.+
+ALSO, UNDER OUR EXISTING LAW, A MARRIED MAN GETS TWICE THE 'ADDITIONAL ALLOWANCE' AS A SINGLE PERSON, I.E. $15 000 INSTEAD OF $7 500. THIS HELPS IN SOME WAY TO ALLEVIATE THE INEQUITY, HE SAID.
HE ADDED THAT THERE WERE COMPLICATIONS IN SEPARATE TAXATION+ BUT ONE IMPORTANT CONSIDERATION NOT OFTEN MENTIONED WAS THE +PRESERVATION OF FINANCIAL SECRECY BETWEEN HUSBAND AND WIFE+.
+THIS IS NOT POSSIBLE UNDER ALL CIRCUMSTANCES WITH JOINT RETURN. NEVERTHELESS, IT DOES NOT APPEAR TO BE APPROPRIATE AT THIS TIME TO CONSIDER SUCH BASIC CHANGE IN THE PRESENT ECONOMIC CLIMATE, + HE SAID, SUPPORTING THE MOTION.
SAID
THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE HE WAS GRATEFUL FOR THE CONSTRUCTIVE AND WISE COMMENTS OF DR HO, MISS TAM AND MR POON.
THIS BILL IS DESIGNED TO REMOVE WHAT SEEMED TO ME QUITE OFFENSIVE PROVISIONS. IT IS NOT INTENDED TO ALTER OUR BASIC SALARIES TAX STRUCTURE.
→THE CONTENTIOUS ISSUES INVOLVED HAVE BEEN EXHAUSTIVELY, INDEED VEHEMENTLY, DEBATED FOR SEVERAL YEARS AND MAY WELL AGAIN FEATURE IN NEXT YEAR'S BUDGET DEBATE, HE SAID.
THE GOVERNMENT, SIR JOHN SAID, RAISES REVENUE TO MEET EXPENDITURE SANCTIONED BY THE COUNCIL.
+ IT IS ENTIRELY PROPER THAT THE METHODS ADOPTED SHOULD BE CRITICALLY EXAMINED. I BELIEVE MYSELF THAT TAX ON THE FAMILY UNIT IS APPROPRIATE IN HONG KONG. I RESPECT OTHER OPINIONS.
+ IF, HOWEVER, WE DO ONE DAY DECIDED TO CHANGE TO SEPARATE TAXATION. HAVE NO DOUBT THAT THE BURDEN REMOVED FROM A FEW WOMEN MUST BE TRANSFERRED ELSEWHERE. AND THE COMPLICATIONS AND COST WOULD BE GREAT INDEED, HE ADDED.
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