6
WEDNESDAY, APRIL 17, 1991
HIGH
THE COMBINATION OF HEAVILY SUBSIDISED SERVICES AND A RELATIVELY THRESHOLD OF DIRECT TAXATION HAD ENSURED THAT MORE PEOPLE HERE HAD GREATER FREEDOM OF CHOICE OVER A LARGER SHARE OF THEIR DISPOSABLE INCOME THAN PERHAPS ANYWHERE ELSE IN THE WORLD, SIR DAVID NOTED.
"WE HAVE ALSO BEEN CAREFUL TO LEAVE OPENINGS FOR THOSE WHO CAN AFFORD TO BUY BETTER SERVICES IN THE PRIVATE SECTOR OR DO BETTER THAN THE PROVISION OFFERED BY THE GOVERNMENT.
"FOR EXAMPLE, THE HOME OWNERSHIP SCHEME WAS DEVISED TO PROVIDE A RUNG UP THE LADDER TO PRIVATE HOUSING FOR THOSE WHO COULD AFFORD IT AND AT THE SAME TIME TO FREE RENTAL FLATS FOR THOSE WHO WERE MORE IN NEED.
"THIS HAS BEEN SO SUCCESSFUL THAT SOME 40 PER CENT OF OUR FAMILIES NOW OWN THEIR OWN HOMES; 20 YEARS AGO THE FIGURE WAS LESS THAN HALF THIS.
"SO THE RESULT OF OUR POLICIES HAS BEEN GREATER UPWARD SOCIAL MOBILITY. THAT IS WHAT LIES AT THE ROOT OF HONG KONG'S SUCCESS.
"NOT A LEVELLING DOWN TO THE LOWEST COMMON DENOMINATOR BUT AN OPENING UP OF EQUAL OPPORTUNITY FOR ALL, THE CHIEF SECRETARY SAID.
INCENTIVE PROVISION FOR LOCAL INDUSTRIES TO UPGRADE TECHNOLOGY SOUGHT: FS
ΤΟ
JACOBS TODAY THE INLAND SECTION 168
Y
THE FINANCIAL SECRETARY, THE HON SIR PIERS (WEDNESDAY) SAID HE IS PROPOSING TO SEEK AMENDMENT REVENUE ORDINANCE TO PREVENT EXPLOITATION OF A PROVISION
WHICH ALLOWS A DEDUCTION IN RESPECT OF EXPENDITURE INCURRED ON THE PURCHASE OF PATENT RIGHTS, OR RIGHTS TO ANY TRADE MARK OR DESIGN, USE IN HONG KONG.
IN HIS SPEECH TO THE LEGISLATIVE COUNCIL CONCLUDING THE RESUMED BUDGET, DEBATF SIR PIERS SAID THIS PROVISION WAS A CONCESSION INTRODUCED IN 1983 AS AN INCENTIVE FOR LOCAL INDUSTRIES ΤΟ UPGRADE TECHNOLOGY.
זי
AM AWARE, HOWEVER, OF ARRANGEMENTS DESIGNED TO OBTAIN SUBSTANTIAL TAX BENEFITS IN CIRCUMSTANCES THAT DO NOT INVOLVE, IN ANY REAL SENSE, AN UPGRADING OF TECHNOLOGY, HE SAID, WHEN COMMENTING ON THE QUESTION OF TAX AVOIDANCE RAISED IN THE DEBATE.
"I
SIR PIERS SAID SUBJECT TO THE ADVICE OF EXECUTIVE COUNCIL, AMENDMENTS WOULD BE INTRODUCED IN THE COURSE OF THIS YEAR TO DEFINE MORE STRINGENTLY THE TYPE OF EXPENDITURE WHICH WOULD QUALIFY UNDER THE PROVISION HE HAD MENTIONED.
"IN ESSENCE, SUCH RXPENDITURE WILL BE RESTRICTED TO THAT ON PATENT RIGHTS AND ON INDUSTRIAL INFORMATION AND TECHNIQUES LIKELY ASSIST IN THE MANUFACTURE OR PROCESSING OF GOODS AND MATERIALS.
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/"DEDUCTIONS WILL