WEDNESDAY, MARCH 4, 1992

16

IS EFFECTIVELY

"THE OVERALL EFFECT OF MY SPECIFIC PROPOSALS NEUTRAL ON THE CPI(A), WHILST SOME OF THE OTHER MEASURES ZERO GROWTH IN THE CIVIL SERVICE, BUDGETTING FOR A SURPLUS PLANNED BORROWING

HE SAID. ARE MILDLY DEFLATIONARY,

SUCH AS AND THE

THE FINANCIAL SECRETARY SAID HE HAD ALSO HAD VERY MUCH IN THE NEED TO PLUG TAX LOOPHOLES WHENEVER THEY APPEARED.

MIND

CRUCIAL

"HONG KONG'S LOW, SIMPLE AND PREDICTABLE TAX REGIME IS

BUT THIS COMMITMENT TO A то ITS SUCCESSFUL BUSINESS ENVIRONMENT. GENEROUS TAX CLIMATE SHOULD NOT BE MISUNDERSTOOD.

"EXTENSIVE TAX AVOIDANCE IS A CLEAR BREACH OF THE SPIRIT OF OUR NOR OF COURSE IS TAX LIBERAL TAX ARRANGEMENTS AND IS NOT ACCEPTABLE. EVASION.

"THOSE WHO PROFIT FROM THEIR OPERATIONS OR RESIDENCE HERE

CONTRIBUTION ACCEPT THEIR OBLIGATION TO MAKE A THROUGH OUR FAR-FROM-ONEROUS TAXES AND DUTIES,

17

TO THE HE SAID.

MUST COMMUNITY

MR MACLEOD POINTED OUT THAT ONE AREA WHICH AT PRESENT ACTION WAS THE VEHICLE FIRST REGISTRATION TAX.

DEMANDED

"THERE

THAT SOME

ARE

IMPORTERS EVIDENCE INCREASING IS ARTIFICIALLY DEPRESSING THE IMPORT PRICE OF VEHICLES TO REDUCE TAX LIABILITY.

++

THEIR

"THIS MAY BE COSTING SEVERAL HUNDRED MILLION DOLLARS A YEAR LOST REVENUE, HE SAID, ADDING THAT A BILL WOULD BE INTRODUCED THE LEGISLATIVE COUNCIL AS SOON AS POSSIBLE TO END THIS ABUSE.

ΤΟ MEASURES PREPARING HE SAID THE GOVERNMENT WAS SPECULATORS FROM AVOIDING STAMP DUTY ON PROPERTY TRANSACTIONS THE DEVICE OF LAND-HOLDING COMPANIES.

IN

INTO

PREVENT THROUGH

"I

WANT TO REPEAT MY MESSAGE: THE TAXES WILL REMAIN LOW,

THE FINANCIAL SECRETARY SAID. WHERE THEY EXIST THEY MUST BE PAID,

ון

BUT

FS PROPOSES NEW REVENUE MEASURES AND TAX CONCESSIONS

*

BUDGET YIELD

THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, IN HIS SPEECH FOR 1992-93 HAS PROPOSED NEW REVENUE MEASURES WHICH WILL ABOUT $2.9 BILLION FOR 1992-93, AND ABOUT $3.8 BILLION IN A FULL YEAR.

THESE REVENUE MEASURES ARE:-

*

CORPORATE

TO INCREASE

PROFITS TAX APPLICABLE TO ASSESSMENTS FOR 1992-93;

*

то

INCREASE

GENERAL

RATES

FOR

FROM

16.5% TO

17.5%

1992-93

BY

HALF

A WILL

THE PERCENTAGE POINT. THIS MEANS THE TOTAL CHARGE TO RATES BE 6%;

/* TO EXTEND

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