WEDNESDAY, APRIL 26, 1989
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HE ALSO SAID THAT THE ABOLISHMENT OF INTEREST TAX, THE FACT THAT THERE SEEMED TO BE LIGHT AT THE END OF THE TUNNEL ON TAXATION OF THE SHIPPING INDUSTRY AND A PROMISE TO LOOK INTO DROPPING OR REDUCING TAXATION ON PROFITS DERIVED FROM UNIT TRUSTS, MUTUAL FUNDS AND VENTURE CAPITAL ACTIVITIES WERE ALL WELCOME NEWS.
"THESE WILL ALL CONTRIBUTE TOWARDS MAINTAINING INTERNATIONAL INVESTMENT INTERESTS IN HONG KONG AT A HIGH LEVEL, HE SAID.
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HE SUGGESTD THE ESTABLISHMENT OF A TAXATION ADVISORY COMMITTEE SO THAT APPROPRIATE EXPERTISE COULD BE DRAWN FROM THE COMMUNITY HELP HONG KONG TAKE A COMPREHENSIVE LOOK AT ITS TAXATION SYSTEM BOTH TECHNICALLY AND FROM A SOCIO-ECONOMIC POINT OF VIEW.
APPLAUDING PLANS TO IMPROVE THE INFRASTRUCTURE, MR CHENG URGED THE GOVERNMENT TO GET ON WITH THE NEW AIRPORT WHICH HE SAID WAS ESSENTIAL TO HONG KONG'S REMAINING A LEADING BUSINESS AND FINANCIAL CENTRE.
HE WAS PLEASED THAT THE GOVERNMENT WAS FINALLY "ON THE MOVE" IN THE FIGHT AGAINST POLLUTION AND THAT THE EXECUTIVE COUNCIL HAD RECTIFIED THE WHITE PAPER WITH ITS HK$20 BILLION PACKAGE.
HE WARNED, HOWEVER, THAT MONEY ALONE WAS NOT ENOUGH AND THAT
IT MUST BE ACCOMPANIED BY TOUGH LEGISLATION.
ON SUBVENTIONS, HE STRESSED THE NEED FOR A QUALITY CONTROL PROCEDURE SO THAT VALUABLE FUNDS COULD BE DIRECTED MORE TO THE RIGHT BODIES AND INSTITUTIONS; AND A COMPREHENSIVE AUDIT TO REDUCE WASTAGE AND ENSURE TAXPAYERS GET THEIR MONEY'S WORTH.
NELLIE FONG CALLS FOR REVIEW OF TAX SYSTEM
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AN OVERALL REVIEW OF HONG KONG'S TAX SYSTEM WAS NECESSARY IN ORDER TO POSITION THE TERRITORY IN THE INTERNATIONAL ARENA, THE HON NELLIE FONG SAID TODAY (WEDNESDAY).
MRS FONG WAS SPEAKING IN THE LEGISLATIVE COUNCIL DURING THE BUDGET DEBATE.
SHE SAID THAT ONE AREA WHERE A REVIEW WAS NEEDED WAS DOUBLE TAXATION IN RESPECT TO CHINA.
AS CHINA INCREASED ITS PARTICIPATION IN THE WORLD ECONOMY AND IN INTERNATIONAL TRADE. IT HAD CONCLUDED DOUBLE TAXATION AGREEMENTS WITH OVER 20 COUNTRIES.
HONG KONG, HOWEVER, DID NOT HAVE DOUBLE TAXATION AGREEMENTS WITH ANY COUNTRY, INCLUDING CHINA, SAID MRS FONG.
SHE SAID