WEDNESDAY, MARCH 28, 1984
21
CONCERN EXPRESSED ABOUT BURDEN ON MIDDLE CLASS
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DR THE HON HO KAM-FAI PROPOSED SETTING THE TAX BANDS OF NET CHARGEABLE INCOME AT $15 000 INTERVALS TO MITIGATE THE EFFECT OF INFLATION AND TO ACHIEVE A GREATER DEGREE OF EQUITY IN DIRECT TAXATION.
SPEAKING AT THE ANNUAL BUDGET DEBATE, DR HO SAID HE SUPPORTED THE FINANCIAL SECRETARY'S BUDGETARY PROPOSALS IN GENERAL.
HE NOTED THAT THE GOVERNMENT HOPED TO BE ABLE TO RAISE ENOUGH INCOME TO PERMIT ITSELF TO STEADILY SPEND ON GENERAL INFRASTRUCTURE AND LONG-TERM SOCIAL AND ECONOMIC DEVELOPMENT PROGRAMME THROUGH A THREE-PRON GED APPROACH-INCREASED TAXATION, USE OF THE FISCAL RESERVES AND ISSUE OF GOVERNMENT BONDS.
+THESE INVESTMENTS ARE VITAL, BECAUSE THEY WILL ENABLE OUR ECONOMY TO STAY VIABLE AND THE PRIVATE SECTOR TO SPEEDILY RESPOND TO THE ECONOMIC UPTURN OF OUR MAJOR TRADING PARTNERS, DR HO SAID.
DR HO SAID THAT GIVEN THE BURGEONING DEMAND FOR PUBLIC SERVICES IN QUANTITATIVE AND QUALITATIVE TERMS, THE TWO PER CENT INCREASE IN THE STANDARD RATE OF SALARIES TAX AS PROPOSED BY THE FINANCIAL SECRETARY WAS INEVITABLE.
HOWEVER, HE POINTED OUT THAT THE SPIRALLING INFLATION IN RECENT YEARS HAD THE EFFECT OF INADVERTENTLY PUSHING THE SANDWICHED CLASSES INTO THE HIGHER TAX BRACKETS.
+AS A RESULT OF THE COMBINED EFFECT OF THE INCREASED TAX RATE AND INFLATION, OUR MIDDLE-CLASSES ARE SHOULDERING A RELATIVELY HEAVY TAX BURDEN, HE SAID.
HE SUGGESTED SETTING THE TAX BANDS OF NET CHARGEABLE INCOME AT $15 000 INTERVALS.
THE REVISED TAX BANDS WOULD RESULT IN A SMALL REDUCTION IN THE ESTIMATED REVENUE, WHICH IS JUSTIFIED ON EQUITY GROUNDS, DR HO SAID.
ON THE ENFORCEMENT OF THE APPRENTICESHIP ORDINANCE, DR HO SAID HIS RECENT RESEARCH INDICATED THAT THE ESTABLISHMENT OF THE APPRENTICESHIP INSPECTORS HAD BEEN SHRINKING OVER THE YEARS, BUT THE NUMBER OF APPRENTICES LIKELY TO BE PUT UNDER THE SUPERVISION OF THE INSPECTORS WAS ESTIMATED TO EXCEED 11 000 IN 1984-85.
+INADEQUATE ENFORCEMENT WOULD NOT ONLY LEAD TO ACCUSATION OF WINDOW-DRESSING, BUT ALSO HAS AN ADVERSE EFFECT ON THE CAREER PROSPECTS OF YOUNG PEOPLE AS WELL AS ON THE FUTURE DEVELOPMENT OF THE ECONOMY, HE SAID.
+HENCE, THERE IS CERTAINLY A STRONG CASE FOR EXPANDING CONSIDERABLY THE ESTABLISHMENT OF THE APPRENTICESHIP INSPECTORATE IN ORDER TO ENABLE IT TO CARRY OUT THE TASK FOR WHICH IT WAS SET UP, HE ADDED.
/WITH REGARD