THURSDAY, MARCH 19, 1987
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'SANDWICHED CLASS' STILL LEFT IN THE COLD
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THE HON CHEUNG YAN-LUNG SAID TODAY (THURSDAY) THAT DESPITE THE ROSY PICTURE PAINTED BY THE 1987-88 BUDGET, THERE WERE STILL A FEW PROBLEM AREAS TO WHICH THE GOVERNMENT MUST ADDRESS ITSELF.
SPEAKING IN THE LEGISLATIVE COUNCIL DURING THE BUDGET DEBATE, MR CHEUNG SAID THAT FOREMOST IN HIS MIND WAS THE CRITICISM THAT THE GOVERNMENT HAD CONTINUED TO LEAVE THE SO-CALLED +SANDWICHED CLASS+ IN THE COLD ONCE AGAIN EMERGED IN A DISCORDANT NOTE.
+THERE IS A BELIEF AMONG CERTAIN SECTORS OF OPINIONS THAT THE OVERALL PERSONAL INCOME TAX POLICY TENDS TO FAVOUR THE WELL-TO-DO THROUGH THE LIMIT OF A STANDARD TAX RATE AS WELL AS THOSE IN THE LOW INCOME BRACKETS, WHO ARE ENJOYING BENEFITS SUCH AS LOW-COST PUBLIC HOUSING AND THE HOME OWNERSHIP SCHEME,+ HE SAID.
MR CHEUNG SAID THERE WERE DISCREPANCIES OF FAIRNESS IN THE TREATMENT OF INCOME EARNERS OF DIFFERENT BRACKETS, AND THE SANDWICHED CLASS WOULD HAVE TO BEAR WITH THE DEPRIVATION OF HOUSING ASSISTANCE AND OTHER SOCIAL WELFARE BENEFITS.
TO HELP REDRESS THE IMBALANCE OF TREATMENT TOWARDS THE MIDDLE-CLASS WAGE EARNERS, MR CHEUNG SUGGESTED THAT CONSIDERATION BE GIVEN FOR THE INTRODUCTION OF A TAX REBATE SYSTEM IN THE FORM OF PERSONAL TAX ALLOWANCES FOR HOUSING MORTGAGES.
THE MEASURE WOULD LIKELY PROMOTE THE DEVELOPMENT OF HONG KONG'S PROPERTY MARKET AS MORE AND MORE PEOPLE WERE ATTRACTED TO HOME OWNERSHIP. THIS WOULD ALSO INDUCE PUBLIC CONFIDENCE IN THE TERRITORY THROUGH THE PRIVATE ACQUISITION OF HOUSING UNITS, HE SAID.
TURNING TO THE FINANCIAL SECRETARY'S TAX PROPOSALS, MR CHEUNG SAID DIRECT TAXATION SET AT A HIGH LEVEL WOULD NO DOUBT DAMPEN PEOPLE'S INCENTIVE AND BE UNFAIR TO THOSE COVERED BY THE DIRECT TAXATION NET.
ON THE OTHER HAND, A BROADLY BASED INDIRECT TAX WAS NOT WITHOUT ITS ADVERSE EFFECT, HE SAID.
+TO BROADEN THE INDIRECT TAX BASE WOULD MEAN THE IMPOSITION OF DUTIES AND FEES ON MORE ITEMS OF COMMODITIES AND SERVICES WHICH WOULD INEVITABLY INCLUDE NON-LUXURIOUS ITEMS, HE SAID. SUCH A MEASURE WOULD AFFECT THE GENERAL PUBLIC AS A WHOLE, PARTICULARLY THE LOWER INCOME GROUP.
HE SAID THE DUTIES AND FEES IMPOSED ON EACH ITEM MIGHT BE MILD, BUT IF THE SCOPE OF INDIRECT TAXES WERE TO BE WIDENED, THE ACCUMULATED EXPENSES WOULD LAY A BIG FINANCIAL BURDEN FOR THE LESS AFFLUENT,
HE URGED ****