THURSDAY, MARCH 19, 1987
21
INTERESTS OF ALL TAKEN CARE OF IN BUDGET
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THE HON LAU WONG-FAT SAID TODAY (THURSDAY) THAT THE 1987-88 BUDGET HAD TAKEN CARE OF THE INTERESTS OF THE VARIOUS STRATA OF THE COMMUNITY.
SPEAKING IN THE LEGISLATIVE COUNCIL DURING THE SECOND DAY OF THE BUDGET DEBATE, MR LAU SAID THE FINANCIAL SECRETARY HAD ADOPTED A CAUTIOUS AND FIRM APPROACH IN DRAWING UP THE BUDGET.
+AS THE ECONOMY OF HONG KONG IS AFFECTED BY EXTERNAL FACTORS, AND IN PARTICULAR BY THE GROWING FORCE OF PROTECTIONISM, IT IS UNDERSTANDABLE THAT THE BUDGET WAS DRAWN UP IN A DISCREET MANNER, + HE SAID.
HOWEVER, THE FINANCIAL SECRETARY HAD NOT CLEARLY INDICATED IN THE BUDGET THAT THE GOVERNMENT HAD FORMULATED AN ECONOMIC POLICY TO PROMOTE AND ENCOURAGE LONG-TERM ECONOMIC DEVELOPMENT IN HONG KONG, MR LAU SAID.
TURNING TO THE FINANCIAL SECRETARY'S TAX PROPOSALS, MR LAU SAID THAT ONE HAD TO CONSIDER CAREFULLY THE CONSEQUENCE OF WIDENING THE SCOPE OF INDIRECT TAXES AS PEOPLE OF THE LOWER MIDDLE CLASS WOULD SURELY BE AFFECTED.
IF IT WAS FOUND TO BE NECESSARY TO INTRODUCE MORE INDIRECT TAXES, THEY SHOULD ONLY BE IMPOSED ON LUXURIOUS ITEMS AND SHOULD NOT BÉ EXTENDED TO COVER DAILY NECESSITIES, HE SAID, ADDING THAT SALES TAX SHOULD BE ABSOLUTELY OUT OF THE QUESTION.
HE ADDED THAT SINCE HONG KONG HAD MANAGED TO SURVIVE DURING THE ECONOMIC SLOW-DOWN IN THE EARLY 1980'S, THERE WAS NO REASON WHY THE TAX SYSTEM SHOULD BE CHANGED NOW WHEN THE ECONOMIC PROSPECT WAS BRIGHT.
MR LAU SAID HE WAS GLAD TO LEARN FROM THE BUDGET THAT THE GOVERNMENT WOULD ALLOCATE FUNDS FOR A FIVE-YEAR PLAN TO IMPROVE CONDITIONS IN MARGINAL AND RURAL AREAS OF NEW TOWNS.
+THERE ARE REALLY VAST AREAS IN THE NEW TERRITORIES WHERE PUBLIC FACILITIES AND SERVICES ARE REQUIRED FAIRLY URGENTLY, HE SAID.
/HOWEVER,