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WEDNESDAY, FEBRUARY 25, 1987
+NEVERTHELESS, THE BUDGET
HAVE PRESENTED TODAY RECOGNISES THE MANY ASPIRATIONS OF OUR COMMUNITY FOR IMPROVEMENTS IN PUBLIC SERVICES. IT ALLOWS FOR SOME ADDITIONAL EXPENDITURE IN THE YEAR AHEAD.
+MORE WILL BE SPENT ON HOSPITALS AND MEDICAL SERVICES, ON EDUCATION AND ON SOCIAL WELFARE. AND THE HOUSING PROGRAMME WILL PRODUCE MORE THAN 40 000 NEW FLATS.
+AT THE SAME TIME IT HAS BEEN POSSIBLE TO PROPOSE REDUCTIONS IN THE TAX BURDEN. MY BUDGET INCLUDES TAX CONCESSIONS COSTING THE REVENUE SOME $1.1 BILLION IN A FULL YEAR.
+FOR SALARIES TAX 1 HAVE PROPOSED INCREASES IN PERSONAL ALLOWANCES AND A REDUCTION IN THE STANDARD RATE BY HALF A PERCENTAGE POINT. THIS IS THE FIRST EVER REDUCTION IN THE STANDARD RATE OF SALARIES TAX. OVER 235 000 PEOPLE WILL BE EXCLUDED FROM THE TAX NET ALTOGETHER.
+I HAVE ALSO PROPOSED A SIMILAR REDUCTION OF HALF A PERCENTAGE POINT FOR PROFITS TAX, PROPERTY TAX AND INTEREST TAX.
+THESE CONCESSIONS SHOULD BE TAKEN AS A CLEAR INDICATION OF OUR DETERMINATION THAT HONG KONG WILL REMAIN A LOW TAX AREA. I HOPE I SHALL BE ABLE TO MOVE FURTHER IN THIS DIRECTION IF OUR FINANCES IN FUTURE SO ALLOW. IN THIS RESPECT, FIRM CONTROL OF PUBLIC EXPENDITURE WILL REMAIN A CRITICAL FACTOR.
+OFFSETTING IN PART THESE TAX CONCESSIONS WILL BE SMALL INCREASES IN VARIOUS INDIRECT TAXES AND CHARGES. THESE INCREASES ARE DESIGNED TO TAKE INTO ACCOUNT THE MODEST INFLATION THAT WE HAVE EXPERIENCED.
+LOOKING AHEAD, WE MUST REMEMBER THAT WE RELY HEAVILY ON OUR TRADE WITH THE REST OF THE WORLD AND THUS REMAIN VULNERABLE TO EXTERNAL EVENTS. NEVERTHELESS, OUR PUBLIC FINANCES ARE IN GOOD SHAPE AND WE CAN FACE THE FUTURE WITH CONFIDENCE.+
BUDGET BRIEFING
***
THE FINANCIAL SECRETARY, MR PIERS JACOBS, WILL GIVE A PRESS BRIEFING ON THE BUDGET AT 3.30 PM TOMORROW (THURSDAY) IN THE GIS PRESS CONFERENCE ROOM, FIFTH FLOOR, BEACONSFIELD HOUSE, CENTRAL.
*
NOTE TO EDITORS.
YOU ARE INVITED TO COVER THE BRIEFING.