WEDNESDAY, MARCH 28, 1984
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+MOREOVER, WITHOUT TAKING INTO ACCOUNT THE REVENUE PROPOSALS, IT REPRESENTS 93 PER CENT OF RECURRENT REVENUE AGAINST A NATIONAL GUIDELINE OF NO MORE THAN 85 PER CENT.
+ THE NEED FOR EXERCISING STRINGENT CONTROL ON EXPENDITURE IS ABUNDANTLY CLEAR, HE STRESSED.
COMMENTING ON THE PROVISION FOR PERSONAL EMOLUMENTS, MR CHEN NOTED THAT THE BUDGETED PROVISION DID NOT MAKE ALLLOWANCE FOR CIVIL SERVICE SALARY ADJUSTMENTS IN THE COMING YEAR AND HE EXPECTED THIS WOULD HAVE TO COME OUT OF THE $1.8 BILLION BUDGETED FOR ADDITIONAL COMMITMENTS.
+ THE RECENT SALARY REVIEW PROPOSALS, IF APPROVED BY THE FINANCE COMMITTEE OF THIS COUNCIL, WOULD ABSORB A VERY SUBSTANTIAL PORTION OF THIS $1.8 BILLION CONTINGENT PROVISION, THUS MAKING IT SO MUCH HARDER TO PROVIDE COVER FOR OTHER WORTHWHILE BUT UNFORESEEN COMMITMENTS, HE SAID.
REGARDING THE REVENUE PROPOSALS, HE SAID THAT CONSIDERING THE UNFAVOURABLE FISCAL CLIMATE AT THE PRESENT TIME, THE TAXATION PROPOSALS AS A WHOLE APPEARED QUITE REASONABLE AND CONSISTENT WITH THE UNDERLYING THEME OF THE BUDGET, WHICH WAS REGARD FOR THE BURDEN ON THE LESS WELL-OFF.
HE ADDED. I HAVE NO QUALMS AGAINST BEING KIND TO THE LESS WELL-OFF, BUT THEN THE FINANCIAL SECRETARTY'S WAY OF SKINNING THE CAT WAS PARTICULARLY HARSH ON THE SO-CALLED SANDWICHED CLASS WHO, BY VIRTUE OF THE PROPOSED INCREASE IN THE STANDARD RATE ON SALARIES TAX, WILL HAVE TO BEAR THE BRUNT OF THE ADDITIONAL TAX BURDEN.
+IT IS HARDLY FAIR ON SALARY EARNERS WHO HAVE NO MEANS TO RECOVER THEIR LOSSES, A SALARY ADJUSTMENT IS THE IR ONLY HOPE BUT THAT WOULD NOT BE WITHOUT REPERCUSSIONS FOR THE ECONOMY,+ HE OBSERVED.
HE SAID HE FAVOURED A DIFFERENT PACKAGE OF DIRECT AND INDIRECT TAX INCREASES WITH A HIGHER CONTRIBUTION FROM INDIRECT TAXATION.
+ IN THE LIGHT OF THE FINANCIAL SECRETARY'S OPTIMISTIC OUTLOOK ON INFLATION, I BELIEVE THIS TO BE BOTH POSSIBLE AND EQUITABLE AND IT WOULD RELIEVE SOME OF THE UNRELENTING PRESSURE TO WHICH THE SANDWICHED' CLASS IS SUBJECT,+ HE SAID.
HE POINTED OUT THAT THERE WERE MANY OPTIONS FOR RAISING MORE INDIRECT TAXATION WITHOUT CAUSING UNDUE HARDSHIP TO THE MAN IN THE STREET.
HE SUGGESTED THAT ONE OPTION WAS TO LEVY HEAVY TAX ON THOSE COMMODITIES WHICH ONLY THE WELL-OFF COULD NORMALLY AFFORD, SUCH AS JEWELLERIES, PERFUMES, EXPENSIVE CLOTHES, LAVISH BANQUETS AND ENTERTAINMENTS, LICENCE FEE FOR LUXURIOUS PLEASURE CRAFTS.
ANOTHER WAS