THURSDAY, MAY 16, 1991
"IN THE YEARS TO COME, WE SHALL, IN MANAGING OUR PL.LIC
FINANCES, CONTINUE TO OBSERVE THE FISCAL DISCIPLINE THAT HAS SERVED US WELL IN THE PAST,
"THIS MEANS THAT WE SHALL HAVE AN EXCELLENT ABILITY TO SERVICE AND REPAY DEBT, HE STRESSED.
-
NO BASY OPTIONS IN REVENUE AND TAXES
**
THE FINANCIAL SECRETARY (DESIGNATE), MR HAMISH MACLEOD, BROUGHT OUT THE DILEMMA INVOLVING GOVERNMENT REVENUE IN A SPEECH TO THE ANNUAL (THURSDAY) DINNER OF THE HONG KONG INSTITUTE OF ECONOMIC SCIENCE THIS EVENING,
SAID.
"THE PROBLEM WITH DIRECT TAXES IS NOT JUST THE VOLATILITY,
НЕ
"THEY ARE ALSO UNEASILY DEPENDENT UPON A RELATIVELY NARROW PART RELIABLE AS ONE WOULD OF THE COMMUNITY, AND HENCE NOT AS ROBUST LIKE.
——
"IT IS TRUE THAT WE HAVE ABOUT 1.2 MILLION THOUGH EVEN THIS IS ONLY ABOUT HALF OUR WORKFORCE.
SALARIES TAXPAYERS
"BUT 56 PER CENT OF OUR SALARIES TAX RECEIPTS IS CONTRIBUTED BY
ONLY 8.3 PER CENT RATE TAXPAYERS ONLY 100,000 STANDARD TOTAL, HE SAID.
-
OF
THE
140
HE NOTED THAT A SIMILAR PROBLEM AROSE WITH PROFITS TAX.
OR
ALL HONG KONG'S BUSINESSES,
0.1 PER CENT OF CONTRIBUTE ONE THIRD OF ALL PROFITS TAX PAID."
"JUST
BUSINESSES,
MAINTAIN
AND
AN ECONOMIC, НЕ SAID
IT WAS IMPORTANT TO CLEARLY FISCAL AND POLITICAL CLIMATE ATTRACTIVE TO THESE MAJOR EMPLOYERS REVENUE SOURCES.
FOR EXAMPLE, LOWER
"NOT ALL OF THIS IS WITHIN OUR CONTROL ECONOMIC GROWTH WOULD HAVE A CONSIDERABLE ADVERSE IMPACT ON DIRECT TAX
OF ONE REVENUE. BUT OUR LOW TAX SYSTEM IS CLEARLY ATTRACTIONS.
HONG KONG 9
"IF
SOLUTION WOULD BB THE THAT WAS THE END OF THE STORY, MOVE MORE VIGOROUSLY INTO INDIRECT TAXES," HE SAID.
OBVIOUS
INDIRECT SOME WERE VULNERABLE TO
MR MACLEOD NOTED THAT THERE WERE ALSO PROBLEMS WITH TAXES. WHILE SOME INDIRECT TAXES WERE INDEED VERY STABLE, NOT AND A GOOD EXAMPLE WAS STAMP DUTY WHICH WAS VERY FLUCTUATIONS IN THE PROPERTY OR STOCK MARKETS, HE SAID.
IS THAT THE
"A MORE IMPORTANT PROBLEM WITH INDIRECT TAXES STABILITY OF MANY SUCH TAXES ARISES BECAUSE THEY AFFECT A LARGE NUMBER OF PEOPLE AND THIS VERY FACT TENDS TO MAKE THEM UNPOPULAR.
/"ADD TO