3
TUESDAY, JULY 2, 1991
OUR
"SUCH A TAX WOULD NOT, OF COURSE, PROTECT US ENTIRELY FROM FALLS IN CONSUMER SPENDING. BUT IT WOULD HAVE THE MERIT OF MAKING RRVENUE MUCH MORE RESISTANT TO CYCLICAL FLUCTUATION IN THE PERFORMANCE OF THE ECONOMY.
"IT WOULD ALSO KNABLE US TO PLAN OUR WITH A GREATER DEGREE OF CONFIDENCE, THUS STOP-GO MEASURES, HE SAID.
τη
EXPENDITURE PROGRAMMES REDUCING THE RISK OF
MR YEUNG STRESSED THAT THE DECISION HAD NOT BEEN TAKEN THAT HONG KONG SHOULD HAVE SUCH A TAX BUT THIS WAS NOT TO SAY THAT WE WOULD NEVER HAVE ONE.
"BECAUSE OF THE
STRUCTURE OP OUR EXISTING TAX SYSTEM, AT PRESENT WE RELY ON DIRECT TAXES FOR ABOUT 60 PER CENT OF OUR ANNUALLY RECURRENT REVENDA.
"SALARIES TAX RAISED ABOUT $13. 1 BILLION IN 1990-91. HIGHER INCOME SALARY BARNERS WHO PAID TAX AT THE STANDARD KATE OF 15 PER CENT COMPRISED JUST A.3 PER CENT OF ALL SALARY TAXPAYERS, BUT THIS 8.3 PER CENT CONTRIBUTED 55 PER CENT OF THE REVENUE.
OVER A WHICH TOGETHER
"BUSINESS PROFITS TAX RAISED $21.2 BILLION IN 1990-91. THIRD OF THIS YIELD CAME FROM JUST 140 BUSINESSES, ACCOUNT FOR 0.1 PER CENT OF ALL REGISTERED BUSINESSES IN HONG KONG.
"THESE FACTS SERVE TO ILLUSTRATE HOW NARROWLY-BASED SYSTEM IS AT THE PRESENT TIME," HE POINTED OUT.
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OUR TAX
'A FISCAL SYSTEM WHICH IS SO HEAVILY RELIANT ON SUCH A NARROW BASE OF DIRECT TAXPAYERS IS PARTICULARLY VULNERABLE TO ANY SLOWDOWN IN THE PERFORMANCE OF OUR ECONOMY, AND AS YOU ALL KNOW OUR ECONOMY IS HIGHLY SUSCEPTIBLE TO CYCLICAL CHANGE BECAUSE IT IS SO DEPENDENT ON EXTERNAL TRADE.
"THUS,
IF AT ANY FUTURE TIME, WE WERE FACED WITH POOR EXTERNAL TRADE PROSPECTS, A SUSTAINED EROSION OF CONFIDENCE AND IRRESISTIBLE DEMAND TO SPEND MORE, WE COULD GET INTO SERIOUS TROUBLE, HE SAID.
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MARINE DEPT FEES AND CHARGES UNDER REVIEW
* * * *
THE PRKS AND CHARGES OF THE MARINE
DEPARTMENT ARE GENERALLY THEREFORE IN NEED OF A
LOW AND SOMKRINES LACKING IN DOGTE AND TA THOROUGH REVIEW, THE DIRECTOR OF MARINE, ME MICHAEL C.C. SZE, SAID TODAY (TUESDAY).
ADDRESSING A LUNCHEON MERTING OF THE CITY LIONS CLUB OF HONG KONG, MR SZE SAID RECENTLY THERE HAD BEEN MUCH DEBATE ON INFLATION AND CRITICISM THAT THE GOVERNMENT WAS FUELING IT THROUGH INCREASES IN FEES AND CHARGES FOR PUBLIC SERVICES.
/"THE FINANCIAL