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THURSDAY, MARCH 1 * 1987
FIRSTLY, THE PRINCIPLE OF THE RULE OF LAW MUST BE UPHELD TO ENSURE POLITICAL STABILITY AND SOCIAL ORDER.
SECONDLY, THE ECONOMIC STATUS AND GOOD RELATIONSHIP WHICH HONG KONG HAD ATTAINED IN THE INTERNATIONAL SCENE MUST BE MADE FULL USE OF, AND POSITIVE ACTION TAKEN TO CREATE FAVOURABLE CONDITIONS FOR MORE PRIVATE INVESTMENTS AND EMPLOYMENT OPPORTUNITIES.
FURTHERMORE, ASSISTANCES BUT NOT ALLOWANCES SHOULD BE PROVIDED TO THE INDUSTRIAL SECTOR IN ITS MOVE TOWARDS SCIENCE AND TECHNOLOGY AND TREMENDOUS EFFORTS MUST BE PUT IN EXTENDING NEW MARKETS IN ORDER TO ENHANCE HONG KONG'S POTENTIAL.
THIRDLY, HONG KONG MUST NOT ONLY PUT THE FUNCTION OF HONG KONG AS THE WORLD'S THIRD LARGEST FINANCIAL CENTRE INTO FULL PLAY BUT ALSO MASTER MARKET MANAGEMENT.
HE SAID TEN OF THOUSANDS OF BUSINESSMEN WERE ATTRACTED TO HONG KONG AS A RESULT OF ITS FREE SYSTEMS AND LOW TAX POLICY.
YET THERE WAS ALWAYS A BIG RISK IN SPECULATION, HE WARNED. THE GOVERNMENT SHOULD PROMPTLY PROCEED TO ENACT LAWS IN ACCORDANCE WITH ACTUAL CIRCUMSTANCES IN ORDER TO AVOID A STORM IN THE MARKET,
HE SAID.
TIME RIGHT TO RELY MORE ON INDIRECT TAXES
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A REVIEW OF THE APPROPRIATENESS AND PURPOSE OF MOVING TOWARDS GREATER RELIANCE ON INDIRECT TAXATION AS A MEANS OF RAISING GOVERNMENT REVENUES MAY NOW BE OPPORTUNE, THE HON MARTIN LEE SAID TODAY (THURSDAY).
SPEAKING DURING THE BUDGET DEBATE, MR LEE AGREED THAT A GRADUAL BROADENING OF THE TAX BASE BECAME MORE FEASIBLE AS THE SOCIETY BECAME WEALTHIER.
+ INDEED FOR EQUITY REASONS IT MAY NOT BE UNDESIRABLE TO SPREAD SOME OF THE RESPONSIBILITIES FOR SUPPORTING GOVERNMENT EXPENDITURES TO THOSE WHO CAN AFFORD TO PAY SOME TAXES BUT NOT PRESENTLY INCLUDED IN THE TAX NET, HE SAID.
HE POINTED OUT THAT IN SO DOING IT OPENED UP THE POSSIBILITY OF REDUCING THE TAX BURDEN ON THE +SANDWICHED CLASS+ AND MIGHT ALSO PROVIDE A STABLE SOURCE OF GOVERNMENT REVENUE WHILE MAINTAINING A LOW TAX SYSTEM,
/HE CAUTIONED