WEDNESDAY, MAY 4. 1988
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RATHER, HE HAD SAID HE WAS PREPARED TO CONSIDER FURTHER HOW SEPARATE TAXATION MIGHT BE INTRODUCED.
HE ALSO REFERRED TO THE HON RITA FAN'S REMARKS THAT REPRESENTATIONS BY MEMBERS ON SEPARATE TAXATION WERE OVERLOOKED.
"AS MRS FAN RIGHTLY SAID, THE OMELCO TAXATION PANEL ADDRESSED ME ON THIS ISSUE IN FEBRUARY 1987,' HE SAID.
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"I SUBSEQUENTLY ARGUED AGAINST SEPARATE TAXATION BOTH IN MY 1987 BUDGET SPEECH, AND IN MY CONCLUDING SPEECH, IN WHICH I GAVE A DETAILED RESPONSE TO MEMBERS' COMMENTS.
"IN THOSE CIRCUMSTANCES, AND AT THAT TIME, IT WOULD HAVE BEEN QUITE ILLOGICAL TO CARRY OUT FURTHER WORK ON THIS MATTER IN THE LIGHT OF WHAT I HAD SAID.
"AFTER I DELIVERED MY CONCLUDING SPEECH IN LAST YEAR'S DEBATE, I DID NOT HEAR FURTHER FROM MEMBERS OF THIS COUNCIL UNTIL NOVEMBER 1987.
"MEMBERS THEN AGAIN URGED THAT CONSIDERATION BE GIVEN TO INTRODUCING SEPARATE TAXATION FOR WORKING MARRIED WOMEN.
"BY THAT TIME IT WAS TOO LATE TO INTRODUCE NEW PROPOSALS INTO MY 1988-89 BUDGET STRATEGY.
"IN ANY EVENT, I WAS CONSCIOUS OF THE FACT THAT SOMB MEMBERS HAD EARLIER ADVOCATED AN ALLOWANCE FOR WORKING MARRIED WOMEN AND, BEARING IN MIND THE FACT THAT I HAD DECIDED TO GRANT AN ALLOWANCE THIS YEAR, I FELT THAT I SHOULD INDICATE THAT THE ALLOWANCE WAS DESIGNED TO PUT MONEY IN THE POCKETS OF WORKING MARRIED WOMEN WHILE WE CONSIDERED THE BEST METHOD OF IMPLEMENTING FULL SEPARATE TAXATION,"
ON CALLS THAT TAX RELIEF BE PROVIDED FOR HOME PURCHASE PAYMENTS, MR JACOBS SAID HONG KONG HAD VERY LOW TAXATION, WHICH SHOULD REMAIN NEUTRAL IN ITS EFFECT, AND NOT BE UNDULY DISTORTED IN FAVOUR OF PARTICULAR CLASSES OR GROUPS OF INDIVIDUALS.
"WHILST I AM, OF COURSE, SYMPATHETIC TO THOSE BUYING THEIR OWN HOMES WITH MORTGAGE FINANCE, I WOULD POINT OUT THAT, TAKEN TOGETHER, MY BUDGET PROPOSALS THIS YEAR PROVIDE SIGNIFICANT ASSISTANCE TO THE MIDDLE INCOME GROUP, NOT LEAST TO THE 100,000 OR SO PERSONS WHO WILL BENEFIT FROM THE RELAXATION IN THE RATES OF STAMP DUTY APPLICABLE ΤΟ SMALL AND MEDIUM-SIZED PROPERTIES, HE SAID.
MR JACOBS ALSO REFERRED TO PROBLEMS THE 1986 U.S. TAX REFORM ACT MIGHT POSE FOR HONG KONG-BASED SHIPOWNERS.
"WE ARE CONSULTING THE U.S. AUTHORITIES ON THIS COMPLEX 199UK IN AN EFFORT TO ASSESS THE EFFECTS OF THE LEGISLATION ON HONG KONG-BASED SHIPOWNERS. THEREAFTER, WE SHALL EVALUATE THE REMEDIES AVAILABLE TO THE HONG KONG GOVERNMENT, HE SAID.
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