26
WEDNESDAY, MAY 9, 1990
SIR PIERS NOTED THAT IN SO DOING, HIS
CONSTANT
PREOCCUPATION POSSIBLE AS
MUST BE TO SEE THAT REVENUE WAS RAISED AS EQUITABLY AS BETWEEN PARTICULAR CLASSES OF TAXPAYERS OR POTENTIAL TAXPAYERS.
"BUT I MUST ALSO HAVE REGARD TO THE PRODUCTIVITY, STABILITY AND EFFICIENCY OF EXISTING AND POSSIBLE NEW TAXES.
"AND I HAVE TO STRIKE AN OPTIMAL BALANCE WITHIN THE TAXATION SEEK TO SYSTEM BETWEEN DIRECT AND INDIRECT TAXES, AND IN PARTICULAR INCREASE THE PROPORTION OF BROAD-BASED, STABLE TAXES," HE SAID.
PIERS REITERATED THE ARGUMENTS FOR A BROADEN TAX MADE IN HIS FIRST BUDGET SPEECH IN 1987. HE HAD SAID THEN:
SIR
BASE
HE
GROW,
THE
'AS BOTH THE ECONOMY AND GOVERNMENT SERVICES STABILITY OF PUBLIC FINANCES CAN BEST BE ASSURED BY ENDEAVOURING TO DEVELOP A BROADLY BASED TAX SYSTEM, BECAUSE SUCH A SYSTEM IS MORE RESILIENT.
'I AM NOT SUGGESTING A CASE FOR HIGHER OVERALL TAXATION SIMPLY A WAY OF SPREADING THE TAX BURDEN MORE WIDELY ACROSS OUR COMMUNITY.
'WE MUST BE PRACTICAL IN OUR APPROACH.
1 WE DO NOT WANT COMPLEX NEW TAXES. NEITHER DO WE WANT TAXES THAT ARE COSTLY TO ADMINISTER OR DAMAGE INCENTIVE. WE HAVE DONE VERY WELL WITHOUT THEM.
'BUT ONE WAY OF ACHIEVING A BROADER TAX BASE IS BY WIDENING THE SCOPE OF INDIRECT TAXES
·
SIR PIERS ALSO MENTIONED HE TOOK UP THE THEME AGAIN LAST YEAR, WHEN HE SAID:
'UNDOUBTEDLY, A BROADENING OF THE INDIRECT TAX SYSTEM WOULD ENABLE ME TO RATIONALISE OR BRING DOWN OTHER TAXES.
'THE
REST OF THE WORLD IS MOVING IN THIS DIRECTION, HONG KONG MUST NOT LOSE THE COMPETITIVE EDGE THAT IT GAINS FROM HAVING LOW DIRECT TAXES. IF WE LOSE THAT EDGE, IT IS LIKELY THAT INVESTORS WOULD LOOK ELSEWHERE, AND ULTIMATELY THIS COULD HIT. OUR LABOUR FORCE. WOULD I REALLY BE PERFORMING SUCH A SERVICE FOR THE LESS WELL-TO-DO MEMBERS OF THE COMMUNITY IF I WERE TO ALLOW THIS TO HAPPEN?'
ON SAID IN HIS
THE ROLE OF FEES AND CHARGES, SIR PIERS REITERATED WHAT
1987 BUDGET SPEECH TO THE COUNCIL.
HE
'OUR POLICY REMAINS THAT SERVICES SHOULD GENERALLY BE PAID BY THOSE WHO USE THEM, UNLESS A POSITIVE DECISION HAS TAKEN TO DEVIATE FROM THIS POLICY.
FOR BEEN
/"IT IS