THURSDAY, NOVEMBER 3, 1988
FS: WORKING PAPER NEXT YEAR ON SALES TAX PROPOSALS
THE GOVERNMENT INTENDS TO PRODUCE A WORKING PAPER EARLY
PUBLIC YEAR AND START CONSULTING THE
ON SALES TAX PROPOSALS, FINANCIAL SECRETARY, MR PIERS JACOBS, SAID TODAY (THURSDAY).
NEXT
THE
PUBLIC
AWARENESS
IN
DIVERSIFICATION THAT THIS
ΤΟ
AWARENESS
SPEAKING AT A LUNCHEON MEETING OF THE KOWLOON ROTARY CLUB, MR
GROWING JACOBS POINTED OUT THAT THERE HAD BEEN RECENT MONTHS OF THE POTENTIAL IMPORTANCE OF TAX THE ECONOMY, AND HE WELCOMED THE PUBLIC HAD GENERATED.
DEBATE
HE SAID THE ADMINISTRATION HAD RECENTLY BEEN EXAMINING IN
WAS BUT HE DETAIL THE NATURE AND SCOPE OF A POSSIBLE SALES TAX
CERTAINLY NOT PROPOSING TO INTRODUCE IT IN THE IMMEDIATE FUTURE, HIS 1989 BUDGET.
SOME NOT IN
A
TIMETABLE.
BUT
"IN FACT, AT THIS STAGE 1 AM NOT WORKING TO WHAT I AM DOING IS ENDEAVOURING ΤΟ GENERATF SOME INTELLIGENT
DESPITE THE COMPLEXITY OF DISCUSSION ON THIS SUBJECT; INVOLVED I AM ENCOURAGED BY THE THOUGHTFUL RESPONSES SO FAR,
THE ISSUES
++
HE SAID.
VIEWS BY LIKELY TO
HE SAID IT WAS HIS INTENTION TO START SEEKING PUBLIC APPROACHING A NUMBER OF ORGANISATIONS AND BODIES THAT WERE BE IN A POSITION TO ENGAGE IN DETAILED DEBATE ON THE PROPOSALS.
"DEPENDING ON HOW WE PROGRESS. I SHALL THEN BE IN A POSITION
NOT ΤΟ OR TO DECIDE WHETHER
TAKE MORE
PROPOSALS TO EXECUTIVE COUNCIL, HE ADDED
FORMAL
THE
HE EXPLAINED
THAT THE OBJECT
OF A SHIFT FROM
TO DIRECT
OF A MORE INDIRECT TAXES WAS THE DEVELOPMENT
STABLE REVENUE BASE TO WHICH WOULD BE LESS VULNERABLE TO ECONOMIC CYCLES, AND BETTER ABLE
AND MEET
SUSTAIN FXPENDITURE ON A RANGE OF
FUNDED
PROGRAMMES AND SERVICES.
GOVERNMENT
ONLY ONE HE SAID THE TAX BASE IN HONG KONG WAS VERY NARROW AS
PAID SALARIES TAX WHILE IN FOUR OF THE LABOUR FORCE
ABOUT 50,000 TAXPAYERS PROVIDED OVER 50 PER CENT OF THE SALARIES TAX REVENUE.
TOP 30 TOGETHER WOULD
SOME 20 PER CENT OF PROFITS TAX REVENUE WAS MET BY THE COMPANIES AND THIS YEAR, SALARIES TAX AND PROFITS TAX ACCOUNT FOR NEARLY HALF OF GENERAL REVENUE. HE ADDED.
TO SWEEP ASIDE THE NEED TO BROADEN THE TAX BASIC ECONOMIC REALITIES, MR JACOBS SAID,
"IN HONG KONG, WE ARE ALMOST BOUND TO IN THE BUSINESS CYCLE THAN IN THE PAST.
BASE WAS IGNORING
SEE
GREATER VOLATILITY
"WITH THAT