40
WEDNESDAY, JUNE 27, 1990
BALANCE OF DIRECT AND INDIRECT TAXATION NEEDS PONDERING
HOVERNMENT
THE
REDRESS
FOR
OF ITS REVENUE SOURCES, ΤΟ INSURE
STABILITY THE MU CONTINUE TO CONSCIOUSLY CONSIDER HOW BEST TO THE IMBALANCE BETWEEN DIRECT AND INDIRECT TAXATION, THE SECRETARY THE TREASURY, MR HAMISH MACLEOD, SAID TODAY (WEDNESDAY).
LONG KONG EXPORTERS' AT A SPEAKING
LUNCH MEETING OF THE
THAT AROSE IN MR MACLEOD SAID THE DIFFICULT PROMO ASSOCIATION,
SUBJECT OF A THE BALANCE BETWEEN THE TWO WERE NOT THE REDRESSING GENERAL REVIEW OF HONG KONG'S TAXATION PHILOSOPHY.
TAXATION, AN
HE ADDED THAT THE JOINT LIAISON COMMITTEE ON
AND FINANCIAL WHOSE MEMBERS INCLUDED LEGAL GROUP INDEPENDENT
IN THE PRIVATE SECTOR, HAD BEEN INVITED FOR THE FIRST
OF PROFESSIONALS
ASPECTS
HONG TIME TO GIVE THEIR VIEWS TO THE GOVERNMENT ON ALL KONG'S TAXATION SYSTEM.
MACLEOD SAID: DIRECT
TURNING то THE EXISTING TAXATION SYSTEM, MR "INDIRECT TAXATION IS NOT NECESSARILY ALWAYS MORE STABLE THAN TAXATION - THE LATTER BEING PRIMARILY PROFITS TAX AND SALARIES TAX BUT CERTAINLY IT TENDS TO BE.'
"
"HENCE THE PROPORTION OF REVENUE WHICH IS INDIRECT TAKEN AS A ROUGH INDICATOR OF STABILITY OF REVENUE. STANDS AT ONLY ABOUT 36 PER CENT," HE NOTED.
-
TAX IS PRESENTLY
THIS
YEARS OF
IT WAS NOT SURPRISING THAT AFTER SO MANY GROSS DOMESTIC PRODUCT GROWTH, HONG KONG HAD ARRIVED AT THIS POSITION.
HE SAID
THE
YIELDS FROM DIRECT TAXATION ARE ALWAYS PUSHED UP BY GROWTH IN PRESSURE ON
FLUSH ECONOMY, WHILE THERE IS ALWAYS A POLITICAL DOWNWARD
ESPECIALLY WHEN THE GOVERNMENT HAS BEEN INDIRECT TAXES, REVENUE, HE POINTED OUT.
WITH
WE SHOULD BEWARE OF LETTING THIS IMBALANCE
HE SAID. DIRECT TAXATION GET OUT OF HAND,
IN
FAVOUR OF
11
WAS HOW
IN TACKLING THIS ISSUE OF IMBALANCE, THE QUESTION
INVOLVED IN MUCH AND WHEN, MR MACLEOD SAID, ADDING THAT THE FACTORS THIS EQUATION WERE VERY COMPLICATED AND SOMETIMES OTHER FACTORS IN THE END TIP THE BALANCE IN ANOTHER DIRECTION.
WOULD
OUR
"WE HAVE TO BALANCE FOR EXAMPLE POLITICAL CONSIDERATIONS,
ΤΟ MAINTAIN A ABILITY ΤΟ COMPETE WITH OUR NEIGHBOURS AND THE NEED SIMPLE TAXATION SYSTEM WITH LOW RATES."
THE ON
POLITICAL SIDE, THE GOVERNMENT HAS QUESTION OF HOW MUCH SHOULD BE CONTRIBUTED TO THE COST PUBLIC SERVICES BY DIFFERENT SECTORS OF THE COMMUNITY.
"AT ONE
ΤΟ ANSWER THE OF PROVIDING
SHOULD PUBLIC
ARGUED THAT EVERYONE IT CAN BE EXTREME, CONTRIBUTE SOMETHING, IF ONLY TO INCULCATE A SENSE OF VALUE OF SERVICES. AT THE OTHER EXTREME, IT WILL BE ARGUED THAT ONLY THOSE MOST
** HE SAID. ABLE TO PAY SHOULD PAY,
"WITH DIRECT