WEDNESDAY, MARCH 7, 1990
18
"IN THE CURRENT FINANCIAL YEAR, WE HAVE ENJOYED SOME EXCEPTIONAL LAND SALES. HAVING REGARD TO THE PROJECTED LAND SALES PROGRAMME AND THE STATE OF THE PROPERTY MARKET, WE DO NOT EXPECT SUCH BUOYANT RESULTS IN 1990-91; HENCE THE REDUCTION IN THE ESTIMATE, SIR PIERS POINTED OUT.
IT
"TAKEN TOGETHER, REVENUE TO THE GENERAL REVENUE ACCOUNT AND THE FUNDS WILL BE $88.6 BILLION, AN INCREASE OF SEVEN PER CENT OVER 1989- 90. THIS INCREASE IS MODEST WHEN COMPARED WITH INCREASES IN SOME PREVIOUS YEARS," HE SAID.
THE FINANCIAL SECRETARY SAID THE DRAFT ESTIMATES OF EXPENDITURE AND REVENUE, BEFORE REVENUE MEASURES, INDICATED A DEFICIT OF $2.4 BILLION.
"GIVEN THE EXPENDITURE COMMITMENTS WE HAVE UNDERTAKEN, AND HAVING REGARD TO THE LOWER ECONOMIC GROWTH RATE WE ARE EXPECTING, I HAVE DECIDED TO INTRODUCE MEASURES WHICH WILL BOTH YIELD ADDITIONAL REVENUE AND SHIFT SOME OF THE BURDEN OF TAXATION FROM DIRECT TAXES TO INDIRECT TAXES.
"MY PROPOSALS WILL REDUCE DIRECT TAXATION BY ABOUT $800 MILLION BUT INCREASE INDIRECT TAXATION BY $2.9 BILLION AND OTHER REVENUE BY $1 BILLION," SIR PIERS SAID.
0
FS WILL AVOID HASTY DECISIONS ON WHOLESALE TAX
THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, SAID TODAY THAT HE WOULD CONTINUE TO AVOID ANY HASTY DECISIONS ON THE ISSUE OF A WHOLESALE TAX.
STRESSING THAT HE WAS NOT DISSATISFIED WITH THE RESULTS OF THE CONSULTATION AND DEBATE ON THE ISSUE, SIR PIERS POINTED OUT THAT WE MUST ENSURE THAT WE DID NOT SADDLE OURSELVES WITH A TAX STRUCTURE THAT MIGHT BE DIFFICULT TO IMPLEMENT OR INAPPROPRIATE TO OUR NEEDS.
"THUS WHILST WE ARE GIVING THIS ISSUE OF A WHOLESALE TAX FURTHER THOUGHT, I WISH TO MAKE IT CLEAR THAT I AM NOT WORKING TO ANY SPECIFIC TIMETABLE, +1 HE SAID IN HIS BUDGET SPEECH.
HE POINTED OUT THAT THE CONSULTATIVE EXERCISE, WHICH WAS COMPLETED IN OCTOBER, DID NOT UNCOVER ANY MAJOR TECHNICAL HURDLE то THE INTRODUCTION OF A WHOLESALE TAX IN HONG KONG, AND SOME HELPFUL COMMENTS WERE MADE AS TO HOW WE MIGHT IMPLEMENT SUCH A TAX.
"WHAT WAS CLEAR, HOWEVER, WAS THAT MOST OF THOSE CONSULTED FELT THAT HONG KONG WAS NOT READY FOR A WHOLESALE TAX AT THIS MOMENT IN TIME,
AND INDEED SOME EXPRESSED CONCERN OVER THE POSSIBLE ADVERSE CONSEQUENCES OF SUCH A TAX ON THE ECONOMY.
/*SOME ALSO