WEDNESDAY, MARCH 26, 1986
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FOR THE GOOD OF HONG KONG PEOPLE IN THE FUTURE, MR CLYDESDALE SUGGESTED POSITIVE ACTION SHOULD BE TAKEN TO INVIGORATE THE ECONOMY BY A WELL CONSIDERED PROGRAMME OF TAX CUTS.
HE SAID IN ORDER TO PROVIDE CONTINUED ENCOURAGEMENT TO THE BUSINESS SECTOR TO INVEST, EXPAND, INNOVATE AND EMPLOY, HONG KONG COULD BEGIN BY REMOVING THE ILLOGICAL SURCHARGE OF 1.5' PER CENT APPLYING TO CORPORATIONS, THUS TAXING THEIR PROFITS AT THE STANDARD RATE OF 17 PER CENT INSTEAD OF THE PRESENT 18.5 PER CENT.
+BUSINESS IS WIDELY ACKNOWLEDGED AS THE ENGINE OF THE ECONOMY AND IT IS ALSO QUITE CLEAR THAT THE LEVEL OF BUSINESS CONFIDENCE WILL DETERMINE OUR FUTURE ECONOMIC VIABILITY.
+A DEMONSTRATION OF HONG KONG'S COMMITMENT TO THE MAINTENANCE OF SIMPLE AND LOW TAXES ON BUSINESS AND PEOPLE WOULD ACT AS A MOST EFFECTIVE STIMULANT TO INVESTMENT AND AN ENCOURAGEMENT TO THE RETENTION OF BUSINESS CONFIDENCE, ON WHICH THE ENTIRE ECONOMY DEPENDS, HE SAID.
HE POINTED OUT THAT THE COST OF THAT PROPOSAL, BASED ON THE FINANCIAL SECRETARY'S RECENT ASSESSMENT, WOULD AT A GUESS PROBABLY BE ABOUT $300 MILLION A YEAR, LIKELY TO BE WELL WITHIN HONG KONG'S CAPABILITY DURING THE NEXT ONE OR TWO YEARS, AND IT COULD WELL +COST+ NOTHING IN THE LONGER TERM.
MR CLYDESDALE FURTHER SUGGESTED THE OPPORTUNITY BE TAKEN TO REMOVE THE TAXES APPLIED LAST YEAR ON COSMETICS AND SOFT DRINKS, WHICH HE TERMED AS +DISCRIMINATORY AND HOPEFULLY TEMPORARY TAXES+.
+THE MAIN BENEFICIARIES WOULD BE WOMEN AND CHILDREN WHO AS WE ALL KNOW USUALLY COME FIRST, HE SAID.
HE ALSO ASKED THAT A MORE GENEROUS ALLOCATION OF FUNDS BE MADE TOWARDS THE WORK OF ORGANISATIONS WHICH SUPPORTED THE DEVELOPMENT OF HONG KONG'S TRADE AND INDUSTRY.
HE SAID THOSE ORGANISATIONS INCLUDED THE HONG KONG MANAGEMENT ASSOCIATION, THE HONG KONG PRODUCTIVITY COUNCIL, THE HONG KONG TRADE FACILITATION COUNCIL AND THE HONG KONG STANDARDS AND TESTING CENTRE, WHICH PROVIDED AN INCREASINGLY ESSENTIAL SERVICE TO HONG KONG'S COMMERCIAL AND INDUSTRIAL SECTORS, A SERVICE WHICH TRADE AND INDUSTRY COULD NOT PROVIDE FOR ITSELF.
+AS WE MOVE UP THE TECHNOLOGICAL LADDER AND AS OUR ECONOMY BECOMES MORE AND MORE SOPHISTICATED WE MUST EXPECT TO SPEND MORE ON THE SYSTEMS WHICH PROVIDE THE STANDARDS OF EXCELLENCE REQUIRED, HE ADDED.
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