THURSDAY, MARCH 28, 1985
18
'DUTY FREE CONCESSION UNFAIR TO LOCAL RESIDENTS'
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THE INTRODUCTION OF A MINIMUM PERIOD OF ABSENCE ABROAD BEFORE THE DUTY FREE CONCESSION APPLIED WAS SUGGESTED BY THE HON PAULINE NG AT THE BUDGET DEBATE TODAY.
NOTING THAT THERE WOULD BE NO INCREASE IN DIRECT TAXATION, SHE SAID INDIRECT TAX SEEMED INEVITABLE TO MAKE UP THE BUDGETARY DEFICIT, BUT FELT IT WAS UNFAIR TO LIMIT THE DUTY FREE CONCESSION FOR LOCAL RESIDENTS RETURNING TO HONG KONG.
OTHER COUNTRIES, SHE SAID, DID NOT IMPOSE RESTRICTIONS ON THE TYPES OF LIQUOR TO WHICH THE DUTY FREE CONCESSION APPLIED.
+ IT IS KNOWN TO ALL THAT THE PEOPLE OF HONG KONG DRINK MUCH MORE SPIRITS THAN WINE, YET IT WAS THE CANCELLATION OF THE DUTY FREE CONCESSION FOR SPIRITS FOR LOCAL RESIDENTS THAT WAS PROPOSED,+ SHE SAID.
SHE NOTED THAT THE MAIN AIM OF THE PROPOSAL WAS TO DETER THOSE TRAVELLERS WHO BRING DUTY FREE ITEMS TO HONG KONG AS A FULL-TIME JOB, AND PROPOSED THE INTRODUCTION OF A MINIMUM PERIOD OF ABSENCE ABROAD BEFORE THE CONCESSION APPLIED.
+ BELIEVE IT WILL NOT RESULT IN ANY SERIOUS CONGESTION AT THE CUSTOMS CONTROL POINTS AS THE DATES OF DEPARTURE AND RETURN ARE CLEARLY INDICATED IN THE TRAVEL DOCUMENTS AND ONLY SOME SIMPLE ARRANGEMENTS ARE REQUIRED TO CARRY OUT THE PROCEDURE.
+ PROPOSE THE MINIMUM PERIOD OF ABSENCE BE SET AT 72 HOURS AND WITH IT, THE REVENUE OF THE GOVERNMENT IN THIS REGARD WILL BE PROTECTED, SHE SAID.
AS REGARDS THE NEW TAXATION MEASURES, MRS NG SAID IN VIEW OF THE PECULIAR ECONOMIC SITUATION IN HONG KONG, IT WAS DESIRABLE TO HAVE THE TAX RATE MAINTAINED AT A LOW LEVEL WHEREAS THE RATE OF DIRECT TAX HAD ALREADY BEEN INCREASED IN 1984.
SHE WAS PLEASED AT THE FINANCIAL SECRETARY'S PROPOSAL THAT THE BAND TO WHICH THE 20 PER CENT RATE OF TAX AT PRESENT APPLIED BE WIDENED FROM $10 000 TO $20 000, WHICH WOULD BENEFIT THE MIDDLE INCOME GROUP.
SHE ALSO EXPRESSED THE HOPE THAT THE GOVERNMENT WOULD CONSIDER OFFERING CONCESSION IN PERSONAL TAXATION FOR SINGLE PERSONS AS WELL.
COMMENTING ON THE PROPOSAL TO LEVY TAX ON NON-ALCOHOLIC BEVERAGES, MRS NG SUGGESTED THAT SUCH MILK-BASED DRINKS, LIKE MILK, SHOULD BE EXCLUDED FROM THE AMBIT OF THE DUTY.
/ON GOVERNMENT