WEDNESDAY, MARCH 18, 1987
18
HK'S POSITION AS FINANCIAL CENTRE MUST BE RETAINED
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HONG KONG MUST RETAIN ITS SYSTEM OF LOW TAX STRUCTURE, MINIMUM RED TAPE, LOW ECONOMIC OVER HEADS, AND POLITICAL, LEGAL AND SOCIAL STABILITY IN ORDER TO REINFORCE AND ENHANCE ITS POSITION AS AN INTERNATIONAL FINANCIAL CENTRE, THE HON HILTON CHEONG-LEEN SAID TODAY (WEDNESDAY).
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SPEAKING DURING THE BUDGET DEBATE IN THE LEGISLATIVE COUNCIL, HE SAID THIS IN TURN WOULD FOSTER THE RIGHT ENVIRONMENT IN HONG KONG FOR FURTHER INDUSTRIAL DEVELOPMENT AND LONGER TERM INVESTMENT COMMITMENT THE KEY TO MAKING THE FUTURE OF HONG KONG UNDER +ONE COUNTRY TWO SYSTEMS+ A REALITY BY 1997.
MR CHEONG-LEEN GAVE FULL SUPPORT TO THE FINANCIAL SECRETARY'S REAFFIRMATION TO MAINTAIN A LOW AND PREDICTABLE TAX REGIME, WHERE THERE WAS A COMMITMENT TO THE SPIRIT OF PRIVATE ENTERPRISE AND THOROUGH DEDICATION TO CONTINUOUS IMPROVEMENTS IN THE PUBLIC SERVICES.
ON THE PRINCIPLE FOR WIDENING THE TAX NET, HE SAID THAT IN A LOW TAX TERRITORY LIKE HONG KONG, WITH ITS PROVEN RECORD OF ECONOMIC SUCCESSES, THE AIM SHOULD BE FOR A 50-50 RATIO IN THE YIELDS FROM DIRECT AND INDIRECT TAXES.
HE SAID THAT SPREADING THE TAX BURDEN MORE WIDELY ACROSS THE COMMUNITY ON A RATIONALLY SELECTIVE ITEM-BY-ITEM BASIS, AND WITH THE NEED TO REVIEW ANNUALLY THE LEVEL OF INDIRECT TAX ON EACH SPECIFIC ITEM SHOULD BE AN ONGOING EXERCISE.
MR CHEONG-LEEN CALLED ON THE FINANCIAL SECRETARY TO LOOK INTO THE REPRESENTATIONS MADE BY THE TRAVEL INDUSTRY AND THE BEVERAGE INDUSTRY TO REDUCE THE LEVEL OF CURRENT INDIRECT TAXES IMPOSED.
ON PERSONAL TAXATION, HE SAID HE WELCOMED THE REDUCTION OF STANDARD RATE, ADDING THAT THE TREND SHOULD BE DOWNWARDS IN THE COMING YEARS,
HE SUGGESTED THAT THERE SHOULD BE AN ALLOWANCE FOR HOME BUYERS, ONE THAT SHOULD BE A BOON FOR LOWER-INCOME EARNERS, AND WHICH COULD BE IN THE REGION OF $20 000.
HE SAID THIS ALLOWANCE COULD ACT AS A FURTHER INCENTIVE FOR FAMILIES WHO WERE NOW IN RENTED PUBLIC ACCOMMODATION TO BUY THEIR OWN HOMES AT AN EARLIER DATE THAN MIGHT HAVE BEEN THE CASE.
ON TAXATION OF MARRIED WOMEN, MR CHEONG-LEEN SAID HE WOULD SUPPORT THE VIEW THAT THERE SHOULD BE SEPARATE TAXATION FOR WORKING WIVES ON AN OPTIONAL BASIS.
/HE DID
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