WEDNESDAY, MARCH 28, 1984
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BUT HE POINTED OUT THAT AT THE SAME TIME. THERE HAD BEEN A VISIBLE UPWARD TREND OF HONG KONG OVERSEAS SETTLERS AND IMMIGRANTS RETURNING TO LIVE AND WORK IN HONG KONG.
+THESE HIGHLY EDUCATED AND HIGHLY TRAINED PEOPLE HAVE MUCH TO OFFER IN UPHOLDING OUR FUTURE ECONOMIC ACTIVITIES, BOTH NOW AND IN THE FUTURE.
+WE HOPE THAT THIS NEW EXPRESSION OF CONFIDENCE IN HONG KONG'S PROSPECTS WILL BE REFLECTED BY THOSE IN HONG KONG WHO ARE NOW EXPERIENCING ANXIETIES ABOUT THEIR FUTURE AND ARE INVESTIGATING THE ALTERNATIVES OPEN TO THEM,+ MR YEUNG SAID.
+ THE CONTINUED PROSPERITY OF HONG KONG IS THE COMMON OBJECTIVE OF ALL CONCERNED IN THE FUTURE OF HONG KONG AND DEPENDS ON STABILITY AND NOT UNCERTAINTY. THE MERE EXISTENCE OF A POSSIBLE ALTERNATIVE WILL CERTAINLY ENCOURAGE HONG KONG PEOPLE TO STRIVE AND DO THEIR BEST FOR THE PLACE BECAUSE IN THE FINAL ANALYSIS HONG KONG IS THEIR HOME AND WHERE THEY ULTIMATELY WISH TO STAY, HE SAID.
TURNING TO THE TAXATION MEASURES CONCERNING INTEREST PROPOSED BY THE FINANCIAL SECRETARY, MR YEUNG SAID THAT HE WAS CONCERNED AT THEIR WIDER IMPLICATIONS THOUGH HE COULD UNDERSTAND THE REASON ING BEHIND THEIR INTRODUCTION.
HE SAID, HONG KONG HAS ESTABLISHED ITSELF AS ONE OF THE WORLD'S MAJOR FINANCIAL CENTRES AND ALTHOUGH THIS HAS BEEN ACHIEVED THROUGH MANY FACTORS, NOT THE LEAST THE WISE ENCOURAGEMENT OF THE HONG KONG GOVERNMENT ONE OF THE MAJOR REASONS FOR ITS SUCCESS HAS CLEARLY BEEN THE STABLE, LOW, SOURCE-BASED TAX SYSTEM.
+ IT IS NOW PROPOSED TO CHANGE THESE ADVANTAGES WITH FORESEEABLE UNCERTAINTIES IN ITS WAKE - NOT ONLY UNCERTAINTY IN THE INTERPRETATION OF THE LAW, BUT UNCERTAINTY IN WHAT THESE CHANGES PORTEND FOR THE FUTURE.-
HE ADDED, +1 MUST SAY THAT I DISLIKE THESE NEW TAXES AND UNDOUBTEDLY SO DOES THE FINANCIAL SECRETARY AS THEY WILL CREATE UNCERTAINTY AND CONFUSION, LEADING TO UNPRODUCTIVE EFFORT AND ENERGY OF THE COMMUNITY RESOURCES IN THE WAR OF ATTRITION BETWEEN THE INLAND REVENUE DEPARTMENT AND THE TAX AVOIDANCE INDUSTRY.+
ADMITTING THAT REVENUE HAD TO BE FOUND SOMEWHERE
AND THAT HE DID NOT HAVE OTHER BETTER SOLUTIONS, MR YEUNG SAID, +I THEREFORE APPEAL TO THE FINANCIAL SECRETARY TO TREAT THESE TAXES AS A MEASURE OF LAST RESORT AND TO REINSTATE THE POSITION AS SOON AS OUR FISCAL POSITION STABILISES,+
HE ENDORSED THE FINANCIAL SECRETARY'S REVENUE PROPOSALS, PARTICULARLY IN RAISING THE RATE OF DIRECT TAXATION TO SUPPORT RECURRENT EXPENDITURE AND BORROWING $1 BILLION TO FINANCE PUBLIC CAPITAL EXPENDITURE WHILE MAINTAINING THE RATIO OF RECURRENT EXPENDITURE AGAINST RECURRENT REVENUE AT A DECENT LEVEL.
+THE SUCCESSFUL RESTRAINT ON PUBLIC SECTOR DEMAND DESERVES SPECIAL RECOGNITION FOR OUR CIVIL SERVICE AND ALL CONCERNED, TO WHOM OUR COMMUNITY IS INDEBTED, HE ADDED.
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