23
THURSDAY, MARCH 29, 1984
LUCK ILY MR POON SAID, THE EXPORT TRADE WAS BUOYANT BUT WHETHER TAX FROM THAT WOULD OFFSET THE POSSIBLE DROP IN TAX REVENUE REMAINED TO BE SEEN.
+THEREFORE, A HIKE OF TWO PER CENT IS UNDERSTANDABLE
AND ACCEPTABLE THOUGH THE BUSINESS SECTOR WILL FIND IT AN EXTRA BURDEN DURING A PERIOD OF GRADUAL RECOVERY AND MAY FEEL THAT 18-1/2 PER CENT IS AS MUCH AS THEY CAN BEAR,+ MR POON SAID.
HE POINTED OUT THAT AN ALTERNATIVE OF MORE BORROWING APPEARED NOT TO BE SENSIBLE BECAUSE INTEREST WOULD HAVE TO BE BORNE AND LOANS WOULD HAVE TO BE REPAID, AND A FURTHER DRAIN ON OUR FREE FISCAL RESERVES WOULD EQUALLY BE INADVISABLE.
TAXES THEREFORE HAD TO BE RAISED, HE STRESSED.
BUT WHEN TIMES WERE GOOD AND GOVERNMENT COFFERS WERE FULL, THERE WAS NO REASON TO BELIEVE THAT OUR FINANCIAL SECRETARY WOULD NOT CONSIDER WHETHER A TAX CUT WAS JUSTIFIED, HE ADDED.
AS FOR THE 'SANDWICHED CLASS', MR POON SAID UNDER THE FINANCIAL SECRETARY'S PROPOSAL THERE WAS NO CHANGE IN THE PRESENT SALARIES TAX PAYABLE UNTIL A BACHELOR'S SALARY EXCEEDED $120 000 P.A. AND THAT OF A MARRIED MAN WITH TWO CHILDREN EXCEEDED $223 700 P.A.
A BACHELOR'S SALARY EARNINGS, IF OVER $150 000 A YEAR, WOULD BE TAXED AT THE NEW STANDARD RATE OF 17 PER CENT, AND A MARRIED MAN WITH TWO CHILDREN WOULD BE SO TAXED IF HIS SALARY REACHED $279 600 A YEAR.
MR POON FELT THAT OUR RELATIVELY CHEAP TRANSPORT, MEDICAL AND EDUCATION FACILITIES WERE AVAILABLE TO ALL INCLUDING THE 'SANDWICHED CLASS' AND THE TAX OF THE AVERAGE SALARY EARNERS, AT ABOUT EIGHT PER CENT ON THE AVERAGE, WAS STILL LOW COMPARED TO OTHER COUNTRIES.
HOWEVER, MR POON URGED THE FINANCIAL SECRETARY TO LOOK INTO THE CASE FOR SEPARATE TAXATION OF THE INCOMES OF THE HUSBAND AND THE WIFE NEXT YEAR.
+ IF DUE TO THE COST OF IMPLEMENTATION OR THE RESULTANT LOSS OF REVENUE BEING TOO GREAT TO BE BORNE AND SEPARATE TAXATION CANNOT BE CONSIDERED, AN INTERIM MEASURE COULD BE THE REINTRODUCTION OF THE WORKING WIFE'S ALLOWANCE AT A REALISTIC LEVEL SAY AT LEAST $10 000 P.A.+, HE SUGGESTED.
REGARDING THE TWO TAX PROPOSALS ON ANTI-AVOIDANCE WHICH AFFECT ONLY PROFITS TAX, MR POON SAID SUCH NEW TAX PROPOSALS, HOWEVER CAREFULLY THOUGHT OUT, MIGHT CAUSE SOME HARDSHIP TO OR PREJUDICE CERTAIN SECTORS OF THE BUSINESS COMMUNITY AND THE GOVERNMENT SHOULD GIVE ITS CAREFUL CONSIDERATION TO SUCH POSSIBILITIES AND GRANT RELIEF WHEREVER PRACTICABLE IN GENUINE AND DESERVING CASES.
/THE FIRST