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THURSDAY, MARCH 29, 1984
SHE URGED THE GOVERNMENT TO MAKE THE NECESSARY PLANNING NOW BY STUDYING THE ADEQUACY OF THE EXISTING SERVICES TO MEET THE EXTRA DEMAND ON PUBLIC TRANSPORT BROUGHT ABOUT BY THE TUNNEL TAX.
SHE SAID THAT MANY CAR-OWNERS WOULD HAVE NO CHOICE BUT TO CONTINUE TO USE THEIR PRIVATE CARS AND PAY THE HIGH TUNNEL TOLLS IF THE SUPPLY OF PUBLIC TRANSPORT WAS INADEQUATE.
+ IF SUCH IS THE CASE, NOT ONLY WILL THE ORIGINAL PURPOSE OF IMPROVING TRAFFIC FLOW BY TAXATION BE DEFEATED, BUT IT WOULD ALSO END UP IN A GREATER BURDEN BEING PLACED UPON THE MIDDLE- INCOME CLASS, + SHE WARNED.
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LESS IMPACT ON LESS-WELL-OFF POON
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THE BUDGET PROPOSALS WOULD HAVE LESS IMPACT ON THE LESS WELL-OFF AND WOULD SPREAD THE BURDEN ON THOSE MORE ABLE TO AFFORD THE INCREASES, THE HON PETER POON SAID IN THE LEGISLATIVE COUNCIL TODAY.
DESCRIBING THE FINANCIAL SECRETARY'S BUDGETARY POLICY AS +SOUND AND WELL-BALANCED+ MR POON POINTED OUT THAT DESPITE THE ORIGINAL ESTIMATED DEFICIT OF $3.6 BILLION, NO CUTS WERE MADE ON EXPENDITURE FOR HOUSING, EDUCATION, SOCIAL SERVICES AND MEDICAL AND HEALTH.
IN FACT, THERE WERE INCREASES IN ALLOCATIONS IN REAL TERMS FOR SUCH ESSENTIAL PUBLIC EXPENDITURE, AND CAPITAL CONSTRUCTION WORKS WOULD ALSO BE MAINTAINED AT A STEADY LEVEL.
+THIS IS HIGHLY LAUDABLE AND SENSIBLE AS WE SHOULD STILL BE STRIVING FOR A BETTER SOCIETY IN HONG KONG DESPITE OUR TEMPORARY ECONOMIC SETBACK, HE SAID.
COMMENTING ON DIRECT TAXATION, MR POON SAID THAT AT FIRST GLANCE THE INCREASE OF TWO PER CENT ON THE STANDARD TAX RATE APPEARED TO BE A BIT TOO HIGH. BUT IT MUST BE CONSIDERED THAT, IN THE PAST YEARS, MANY BUSINESSES SUFFERED LOSSES ESPECIALLY IN THE PROPERTY SECTOR AS A RESULT OF WHICH THERE WERE ALSO SUBSTANTIAL BAD DEBTS, MAINLY FOR BANKS AND FINANCIAL INSTITUTIONS, HE SAID.
THIS MEANT NO TAX OR REDUCED TAX REVENUE COULD BE EXPECTED FROM SUCH PROPERTY CONCERNS FOR 1984/85, AND THERE MIGHT EVEN BE REFUNDS OF PROVISIONAL TAX OR SET OFF OF SUCH LOSSES BY PROFITS FOR THAT YEAR OR PERHAPS SUBSEQUENT YEARS FOR SOME BUSINESSES IN THAT SECTOR, HE EXPLAINED.
/LUCKILY, MR POON