WEDNESDAY, APRIL 1, 1987
NJ.
2
WITH REGARDS TO MRS NG'S COMMENTS. MR JACOBS SAID, THERE WAS NO EVIDENCE TO SUGGEST THAT THE PRESENT SYSTEM INHIBITED WOMEN WHO WISHED TO WORK FROM JOINING THE WORKFORCE.
+ON THE CONTRARY, HONG KONG'S FEMALE LABOUR FORCE PARTICIPATION RATE AT 48.5 PER CENT ALREADY COMPARES FAVOURABLY WITH THAT IN MANY DEVELOPED AND DEVELOPING COUNTRIES, HE SAID.
TURNING TO SUGGESTIONS FOR INTRODUCTION OF A WORKING-WIFE ALLOWANCE, MR JACOBS SAID SUCH AN ALLOWANCE WOULD BE EXPENSIVE.
AN ANNUAL ALLOWANCE OF $20 000 PROPOSED BY THE HON PETER POON WOULD COST $530 MILLION AT 1986-87 LEVELS OF INCOME.
+ADDITIONALLY, THE INTRODUCTION OF A WORKING-WIFE ALLOWANCE WOULD UNDULY COMPLICATE OUR SIMPLE SYSTEM OF TAXATION, AND HAVE THE EFFECT OF CONFERRING BENEFITS ON A PARTICULAR GROUP OF TAXPAYERS AT THE EXPENSE OF THE GREATER MAJORITY,+ HE SAID.
MR JACOBS THANKED MEMBERS FOR THEIR COMMENTS DURING THE EARLIER DEBATE ON THE OTHER ASPECTS OF TAXATION, INCLUDING THE VIEWS ON A BALANCE BETWEEN DIRECT AND INDIRECT TAXES.
+I SENSED SOME APPRECIATION OF THE POTENTIAL VALUE OF A WIDER AND MORE STABLE TAX BASE - HOWEVER BALANCED BETWEEN DIRECT AND INDIRECT SOURCES.+
HE SAID HE AGREED WITH COMMENTS BY SENIOR MEMBER, THE HON LYDIA
+1 DO NOT DUNN, THAT HONG KONG SHOULD NOT HAVE A VALUE ADDED TAX. BELIEVE THAT A VALUE ADDED TAX WOULD BE RIGHT FOR HONG KONG,+ MR JACOBS SAID.
MR JACOBS SAID HE HAD DOUBTS ABOUT SOME MEMBERS' SUGGESTION THAT FURTHER +LUXURY+ ITEMS BE BROUGHT INTO THE INDIRECT TAX NET AS TO WHETHER THIS WOULD EFFECTIVELY CONTRIBUTE TO HIS OBJECTIVE OF MORE STABLE TAX YIELDS AND A BROADER BASE.
+TO CONCENTRATE UPON THEM WOULD AMOUNT TO NO MORE THAN A TINKERING WITH THE EXISTING SYSTEM.
HE REPEATED AN ASSURANCE THAT +NOTHING WILL BE PROPOSED WITHOUT THE MOST CAREFUL APPRAISAL AND CONSIDERATION OF THE POTENTIAL EFFECTS+.
+THE PRESENT TAX REGIME HAS SERVED US WELL AND WILL NOT BE LIGHTLY CHANGED, MR JACOBS SAID,
ALL ASPECTS OF THE TAX STRUCTURE WERE EXAMINED EACH YEAR, MR JACOBS SAID. + WOULD NOT WANT ANYONE TO THINK THAT IN PUTTING TOGETHER OUR PROPOSALS OUR APPROACH IS ARBITRARY.+
/HE SAID