WEDNESDAY, APRIL 25, 1984
ON VARIOUS POSSIBLE NEW TAX MEASURES +CAREFULLY THOUGHT OUT+ BY THE HON S.L. CHEN AND THE HON K.C. CHAN, SIR JOHN SAID, +1 INTEND, HOWEVER, TO KEEP OUR TAX AMBIT RELATIVELY SIMPLE, TO BE RESPONSIVE TO PUBLIC OPINION, TO LIMIT THE EFFECTS OF INFLATION ON THE LESS WELL OFF, AND TO MATCH POSSIBLE REVENUE YIELD AGAINST COST AND COMPLICATION.+
ON THE CROSS HARBOUR TUNNEL TAX, SIR JOHN MADE THE FOLLOWING COMMENTS:
* THE GOVERNMENT NEEDS THE ADDITIONAL REVENUE OF $139 MILLION
THOUGH IT IS NOT THE PRIME REASON FOR THE TAX.
*
*
ON THE
THE SHARES OF THE COMPANY ARE PUBLICLY QUOTED. FIRST QUOTATION DAY OF JULY 30, 1974, THE PRICE CLOSED AT $4.60 WHILE NOW IT IS SELLING AT ABOUT $12.30.
THERE IS AN ORCHESTRATED PRIVATE CAR DEFENCE LOBBY, SIR JOHN ASKED WHETHER THE CRITICS COULD MAKE A COMPARISON OF TAXATION IN THIS AREA WITH THAT OF SINGAPORE WHOSE TRAFFIC PROBLEMS ARE SIMILAR TO THOSE OF HONG KONG. THE GOVERNMENT DESERVES CONGRATULATIONS RATHER THAN UNBALANCED ATTACKS.
PERHAPS,
ON PROPERTY RATE ARRANGEMENTS, SIR JOHN EXPRESSED THE BELIEF THAT THEY WERE ACCEPTED BY THE MAJORITY AS +BEARABLE IN THE LIGHT OF THE SERVICES THEY RECEIVE.+
+ IT IS OUR INTENTION THAT IN FUTURE REVALUATION WILL NORMALLY BE CONDUCTED ON A THREE-YEAR CYCLE, ALTHOUGH IT MAY NOT BE FEASIBLE TO ACHIEVE THIS FOR THE NEXT EXERCISE,+ HE SAID.
SALARIES TAX INCREASE AFFECTS MINORITY
*****
ONLY ABOUT 30 000 SALARIES TAXPAYERS, OUT OF A POPULATION OF 5.3 MILLION, WILL BE AFFECTED BY THE PROPOSED TWO PER CENT INCREASE IN THE SALARIES TAX, THE FINANCIAL SECRETARY, THE HON SIR JOHN BREMRIDGE, ESTIMATED TODAY.
SIR JOHN BASED THIS ESTIMATE ON A TYPICAL HONG KONG FAMILY OF MAN, WIFE AND TWO CHILDREN.
+MY EXAMPLE WILL PAY NO INCREASE TAX WHATSOVER UNTIL MONTHLY SALARY EXCEEDS $18 650 PER MONTH, NOR FALL INTO THE 17 PER CENT BRACKET UNTIL HIS, HER OR THEIR COMBINED SALARY EXCEEDS $23 300 PER MONTH, HE SAID.
IT IS IMPOSSIBLE IN HONG KONG OR ELSEWHERE TO INCREASE TAX REVENUE WITHOUT INVOLVING SOME PEOPLE IN PAYING MORE TAX.
+I HAVE CONSEQUENTLY SOUGHT TO SHAPE THE BUDGET AS BEST I CAN TO PROVIDE THAT ONLY THOSE PAY MORE WHO ARGUABLY CAN SO AFFORD. SALARIES TAX IS PROGRESSIVE, HE SAID.
/TO THE