WEDNESDAY, APRIL 17, 1991
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THE FINANCIAL SECRETARY SAID HE HOPED THAT DURING THE COURSE OF THIS YEAR, HIS SUCCESSOR WOULD HAVE A CHANCE TO DISCUSS WITH MEMBERS, INFORMALLY BUT IN MORE DEPTH, THE QUESTION OF BROADENING THE TAX BASE.
"IT IS IN THE HANDS OF THIS COUNCIL, AFTER ALL, THAT THE FINAL DECISION ON THE MATTER RESTS, HE SAID.
SIR PIERS NOTED THAT THERE WERE SOME REFERENCES TO HIS HAVING BROADENED THE TAX BASE WHILE NOT INCREASING THE RATES OF SALARIES AND PROFITS TAX, AND IT WAS SUGGESTED THAT HE HAD NOT HAD ANY REGARD FOR THE PRINCIPLE OF USING TAXATION FOR THE RE-DISTRIBUTION OF WEALTH.
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BEFORE WE RR-DISTRIBUTE ANY WEALTH, WE HAVE TO CREATE IT," THE FINANCIAL SECRETARY SAID.
HE POINTED OUT THAT THERE WERE BASICALLY TWO MAJOR RESOURCES IN HONG KONG OUR EXCELLENT INFRASTRUCTURE, AND OUR TALENTED AND HARD- WORKING WORKFORCE.
"WE HAVE OUR EXCELLENT INFRASTRUCTURE BECAUSE WE HAVE NEVER SHIED AWAY FROM INVESTING HEAVILY IN IT.
"OUR LABOUR FORCE THRIVES ON HAVING A HIGH LEVEL OF DISPOSABLE INCOME TO SPEND ON CREATING A BETTER QUALITY OF LIFE.
"IN GENERAL, OUR STANDARD OF LIVING HERE IS HIGH, AND YET IN COMPARISON WITH OUR NEIGHBOURS IN THE REGION, HONG KONG REPRESENTS EXCELLENT VALUE FOR MONEY BOTH AS A PLACE IN WHICH TO INVEST AND AS A TRADING BASE," SIR PIERS SAID.
THE FINANCIAL SECRETARY SAID HE COULD NOT HIDE THE FACT THAT THE GOVERNMENT DID SOMETIMES ROB THE RICH, IN A QUIET AND GENTLEMANLY FASHION.
"TO A LIMITED EXTENT, WE CATCH THEM AS THEY EARN, BUT THEY ARE ALLOWED TO RIDE ON THROUGH THE FOREST WITH ENOUGH INTACT SO THAT THEY DO NOT FEEL INHIBITED FROM MAKING EXTRA INVESTMENTS THUS CREATING MORE JOBS.
"ALSO, WE HAVE IN OUR COMMUNITY SOME OF THE MOST GENEROUS SUPPORTERS OF CHARITIES AND GOOD CAUSES IN THE WORLD, HE SAID ADDING THAT THE RICH PEOPLE WERE AGAIN CAUGHT WHEN THEY SPENT.
"IF THEY BUY EXPENSIVE CARS, THEY PAY A TAX OF 120 PER CENT ON THE IMPORT VALUE. SO A $500,000 CAR BRINGS IN ABOUT $200,000 IN TAX AND A FURTHER $10,000 A YEAR IN LICENCE FEES.
"IF IT IS A REALLY SOUPED-UP MODEL, THERE WILL BE A FURTHER CENTS EXTRA IN DUTY PER LITRE TO PAY FOR THE LEADED PETROL TO RUN CAR.
"A $300 BOTTLE OF CHAMPAGNE BRINGS IN TAX OF $77 AND A BOTTLE OF BRANDY, $79. FOR THE LADIES, A $400 BOTTLE OF PERFUME ATTRACT A LITTLE OVER $45 IN TAX," HE CITED.
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THE
$200 WILL
ON A SOMEWHAT MORE MUNDANE LEVEL, THE FINANCIAL SECRETARY SAID SALARIES TAXPAYERS WITH HIGHER INCOMES PAYING TAX AT THE STANDARD RATE OF 15 PER CENT CONTRIBUTED 56 PER CENT OF ALL SALARIES TAX REVENUE, ALTHOUGH THEY REPRESENTED ONLY 8.3 PER CENT OF TAXPAYERS.
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