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THURSDAY, MARCH 29, 1984
MR CHEONG SAID THAT HE SUPPORTED WHOLEHEARTEDLY THE PROPOSAL THAT FEES AND CHARGES MUST BE KEPT UNDER CONSTANT REVIEW AND MUST BE BROUGHT INTO LINE WITH COSTS.
+JUST AS GOVERNMENT DEPARTMENTS MUST GET INTO THE HABIT OF LOOKING FOR ECONOMIES, SO MEMBERS OF THE PUBLIC MUST GET INTO THE HABIT OF PAYING THE COST, OR A FAIR PROPORTION OF IT, OF THE SERVICES RECEIVED, HE SAID.
HE SUGGESTED THAT FEES AND CHARGES FOR THE FOLLOWING SHOULD BE REVIEWED FURTHER:
AIR CARGO THROUGHPUT CHARGES, AIRCRAFT PEAK MOVEMENT SURCHARGE, RENT OF PRIVATE POST BOXES AND BAGS, HONG KONG-MACAU FERRY TERMINAL BERTHING FEES, BIRTHS AND DEATHS REGISTRATION FEES, MARRIAGE REGISTRATION FEES, PATENTS AND TRADE MARK REGISTRATION FEES, OFFICIAL RECEIVER'S FEES, IMPORT AND EXPORT DECLARATIONS, APPLICATION FEES FOR CERTIFICATE OF ORIGIN, SUBSCRIPTION TO NOTICE TO EXPORTERS, APPLICATION FEES FOR TEXTILE EXPORT LICENCES.
HE OBSERVED THAT MOST OF THESE FEES AND CHARGES HAD NOT BEEN INCREASED SINCE 1978 AND IF THEY WERE INCREASED BY 20 PER CENT TO ALLOW FOR COST INCREASES, THESE WOULD BRING IN AN ADDITIONAL $60 MILLION.
+THIS SUM MAY SEEM SMALL IN COMPARISON WITH THE TOTAL CONSOLIDATED ACCOUNT EXPENDITURE, BUT ONE MUST NOT FORGET THAT REGULAR REVISIONS WILL PROVIDE A MORE MEANINGFUL YIELD, HE SAID.
COMMENTING ON THE TWIN PROPOSALS DESIGNED TO PROTECT THE YIELD FROM PROFITS TAX AS WELL AS TO CHARGE PROFITS TAX ON INTEREST RECEIVED, MR CHEONG SAID THAT HE COULD UNDER STAND THE CONCERN OF THE FINANCIAL SECRETARY OVER THE LOSS TO REVENUE ARISING FROM THE ABOLITION OF THE INTEREST WITHOLDING TAX.
HE CONCEDED THAT SOMETHING HAD TO BE DONE BUT ADDED, IN EXAMINING THE PROPOSALS, I HAVE TO POINT OUT THAT THEY MAY BE UNNECESSARILY PUNITIVE TO EXPORT AND MANUFACTURING BUSINESSES.+
THE NEW PROPOSAL TO CHARGE INTEREST RECEIVED ON FOREIGN CURRENCY DEPOSITS TO PROFITS TAX WOULD CORRECT THE LOSS TO GOVERNMENT'S REVENUE, HE OBSERVED.
+BUT TO DISALLOW THE EXPENSES INCURRED ON HONG KONG DOLLAR BORROWINGS AT THE SAME TIME WOULD BE INEQUITABLE AND WOULD BEAR HARSHLY ON THE EXPORT SECTOR, AND IT IS THE STRENGTH OF THIS SECTOR ON WHICH THE GROWTH RATE OF THE ECONOMY IN 1984 IS MAINLY DEPENDENT, HE SAID.
HE URGED THE GOVERNMENT TO LOOK CLOSELY AT THIS PROBLEM.
ON THE SUBJECT OF THE DOLLAR LINK, MR CHEONG SAID HE BELIEVED THAT A REFLOAT IN THE NEAR FUTURE WOULD NOT BE APPROPRIATE.
/ADMITTING THE
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