WEDNESDAY, MARCH 27, 1985
25
S.L. CHEN PROPOSES TAX ON ADVERTISING
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TAX ON ADVERTISING EXPENDITURE WAS PROPOSED BY THE HON S.L. CHEN IN THE LEGCO BUDGET DEBATE TODAY (WEDNESDAY).
ELABORATING ON HIS SUGGESTION, HE SAID THAT ADVERTISEMENT DID NOT INCREASE THE REAL VALUE OF THE PRODUCTS IT REPRESENTED.
IT ONLY CREATED IMPRESSIONS, HE SAID.
SOCIETY WOULD NOT SUFFER, NOR THE GENERAL STANDARD OF LIVING BE LOWERED, IF ADVERTISEMENT EXPENDITURE WAS REDUCED AS A RESULT OF THE PROPOSED TAX, HE SAID.
+ALTHOUGH THERE IS NO OFFICIAL STATISTICS ON THE TOTAL ANNUAL EXPENDITURE ON ADVERTISING IN HONG KONG, I THINK THE REVENUE POTENTIAL OF THE PROPOSAL IS HUGE,+ MR CHEN SAID,
HE NOTED THAT THE CENSUS AND STATISTICS DEPARTMENT HAD RECORDED A TOTAL TURNOVER OF $2 600 MILLION FOR THE PUBLIC RELATIONS, MARKET RESEARCH, AND ADVERTISING TRADE AS A WHOLE IN 1982.
+EVEN ASSUMING THAT HALF OF THE EXPENDITURE IS FOR ADVERTISING PURPOSES, AND WITH AN ANNUAL GROWTH RATE OF AROUND 25 PER CENT WHICH A UNIVERSITY RESEARCHER HAS DISCOVERED RECENTLY, THE TOTAL ESTIMATED EXPENDITURE ON ADVERTISING IS $2 000 MILLION IN 1984, HE SAID.
HE SAID THAT SINCE ADVERTISING EXPENDITURE WOULD GENERALLY GROW WITH CONSUMPTION, TAX REVENUE WOULD GROW WITH FURTHER INCREASES IN OUR GDP.
HE ADDED THAT IF ADVERTISEMENT WAS REDUCED AS A RESULT OF THE PROPOSED TAX, THE SELLING COST OF THE COMMODITIES, FOR EXAMPLE SOFT DRINKS, COULD BE LOWERED TOWARDS HELPING TO OFF-SET THE PROPOSED TAX ON SOFT DRINKS.
MR CHEN FURTHER SUGGESTED THAT THE GOVERNMENT SHOULD GIVE SERIOUS CONSIDERATION TO TAXING THE USE OF AIR SPACE OVER ROADS BY ADVERTISING SIGNS PROTRUDING FROM BUILDINGS.
SUCH A PROPOSAL WOULD NOT ONLY RESULT IN REVENUE ACCRUING TO THE PUBLIC PURSE, BUT ALSO MIGHT RESULT IN A TIDIER AND POTENTIALLY SAFER ENVIRONMENT FOR THE CITY, HE SAID.
MR CHEN'S NEXT PROPOSAL WAS FOR GOVERNMENT TO INTRODUCE A MORE EFFECTIVE SYSTEM OF TAXING SELF-EMPLOYED PROFESSIONALS.
*WE ALL KNOW THAT TAX AVOIDANCE OF UNSALARIED PROFESSIONALS IS PRACTISED WIDELY AND AN EFFECTIVE SYSTEM AGAINST AVOIDANCE WOULD NOT ONLY BE FAIR BUT ALSO HELP SUBSTANTIALLY TOWARDS THE FINANCIAL SECRETARY'S EFFORT IN ATTAINING A BALANCED BUDGET AT AN EARLY DATE, HR SAID.
/HE THEREFORE