WEDNESDAY, APRIL 25, 1990
TO ACHIEVE THIS END, SHE SUGGESTED THAT THE FINANCIAL SECRETARY SHOULD BE AUSTERE IN KEEPING DOWN THE COST AND SCALE OF THE PUBLIC SERVICE AND LOOK FOR AREAS TO TRIM DOWN ON THE ESTABLISHMENT OF THE CIVIL SERVICE.
SHE SAID THE GOVERNMENT SHOULD IMPOSE STRICT CONTROL ON THE PHASING IN OR CO-ORDINATION OF VARIOUS PUBLIC WORKS PROJECTS WITH THE PADS RELATED PROJECTS TO AVOID AS MUCH AS POSSIBLE OVER HEATING THE ECONOMY IN ANY ONE YEAR.
OF
THE GOVERNMENT SHOULD
ALSO BE PREPARED TO
ACCEPT THAT NO
TARGET DATE WAS SACROSANCT, SHE SAID.
SUPPORT
THE
"WE MUST GENERATE ENOUGH REVENUE TO INFRASTRUCTURAL PROGRAMMES BUT THE BURDEN MUST BE SPREAD CAREFULLY OVER A REASONABLE PERIOD OF TIME SO AS TO AVOID HIGH INFLATION AND UNREASONABLE TAX BURDEN IN ANY GIVEN YEAR," SHE SAID.
MISS TAM ALSO SUGGESTED THAT THE GOVERNMENT WATCH OUT FOR THE COSTS OF PRIVATISATION OF ANY GOVERNMENT SERVICES AS THE COST OF SUCH SCHEMES WAS GETTING HIGHER AND HIGHER.
ON TAXATION, MISS TAM NOTED THAT THE FINANCIAL SECRETARY HAD TAKEN NO FURTHER STEPS TO PUSH FOR THE WHOLESALES TAX IN HIS BUDGET SPEECH BUT THE INCREASE IN REVENUE AND CHARGES HAD SIMILAR EFFECTS IN SPREADING THE TAX BURDEN AS THE WHOLESALES TAX, WITH THE INCREASE ON WATER CHARGES AND FUEL TAX AFFECTING EVERYONE AND THE RISE IN RATES AFFECTING 1.09 MILLION RATE PAYERS.
SHE POINTED OUT THAT TAX ON DIESEL OIL WAS INCREASED BY 30 PER CENT WITH NO CORRESPONDING REBATE GIVEN TO ENFRANCHISED PUBLIC BUSES, WHICH WOULD MEAN AN INCREASE OF FOUR CENTS A PASSENGER TRIP.
PREPARED THE TAX A SOUND
"IT CERTAINLY GIVES THE IMPRESSION THAT GOVERNMENT IS TO ROPE EVERYONE, INCLUDING THE LESS WELL OFF, DEEPER INTO NET. THE MOVE FROM DIRECT TAXES TO MORE INDIRECT TAXES IS HOUSEHOLD FINANCE MANAGEMENT STRATEGY, BUT WE MUST REMEMBER THE BURDEN IT CAN CREATE ON THE LESS WELL OFF.
"ONE CAN SAY THAT FOR WHOLESALES TAX IT IS UP TO THE INDIVIDUAL WHETHER HE WISHES TO SPEND MONEY ON GOODS AND SERVICES. BUT PUBLIC TRANSPORTATION EXPENSES CANNOT BE AVOIDED, SHE SAID.
"I
MISS TAM SUGGESTED THAT THE FINANCIAL SECRETARY SHOULD CONSIDER GRANTING A REBATE OF FUEL TAX TO ENFRANCHISED BUS COMPANIES.
SHE EXPRESSED CONCERN THAT THE FINANCIAL SECRETARY MIGHT SEEK TO INTRODUCE WHOLESALES TAX ON THE ONE HAND AND IMPOSE TAXATION ON THE BASIC ESSENTIALS ON THE OTHER IN LOOKING FOR REVENUE TO PAY FOR PUBLIC SECTOR EXPENDITURE.
"THUS IN THE PROCESS OF ACHIEVING A MORE COMFORTABLE RATIO BETWEEN DIRECT AND INDIRECT TAXATION WE END UP NOT ONLY WIDENING THE TAX BASE BUT ALSO RAISING HIGHER REVENUE ON EXISTING INDIRECT TAX.
/"THE RESULT