WEDNESDAY, APRIL 1, 1992
1
SALARIES TAX ALLOWANCES TO BE INCREASED NEXT YEAR
SUBJECT TO CONSTRAINTS
**
THE FINANCIAL SECRETARY, THE HON
HON HAMISH MACLEOD, TODAY (WEDNESDAY) GAVE FIRM ASSURANCES TO MEMBERS OF THE LEGISLATIVE COUNCIL ABOUT HIS INTENTION TO ALLEVIATE THE TAX BURDEN ON THE LOWER AND MIDDLE INCOME GROUPS IN THE 1993-94 BUDGET.
THE ASSURANCES WERE GIVEN SUBJECT TO THE CONDITION THAT HONG KONG'S FINANCIAL POSITION AFTER THIS BUDGET CONTINUED TO BE AS FORECAST AND ON THE UNDERSTANDING THAT ALL THE REVENUE MEASURES IN THE BUDGET WERE PASSED.
"OTHERWISE, OUR FINANCIAL POSITION COULD HARDLY BR AS FORECAST IN THE BUDGET, HE SAID.
CONCLUDING THE DEBATE ON THE SECOND READING OF APPROPRIATION BILL 1992, MR MACLEOD SAID:
THE
"IN MY NEXT BUDGET, SUBJECT TO THE CONSTRAINTS I HAVE JUST EXPLAINED, I CAN NOW CONFIRM THAT I PLAN TO INCREASE SALARIES TAX ALLOWANCES SUBSTANTIALLY, IN ADDITION, WE SHALL CARRY A REVIEW OF TAX BANDS. WHILST I OBVIOUSLY CANNOT BE TOO SPECIFIC AT THIS STAGE, I WOULD ENVISAGE THE BENEFIT (AND INCIDENTALLY THE COST) OF THIS IMPROVEMENT IN THE BANDS AS BEING AT LEAST AS GREAT AS THAT INVOLVED IN INCREASING THE TAX ALLOWANCES. THE OVERALL AIM OF THESE IMPROVEMENTS WILL BE ΤΟ SUBSTANTIALLY LESSEN THE TAX LIABILITY OF THE SANDWICH CLASS."
NOTING THAT A NUMBER OF MEMBERS HAD ASKED HIM TO BE MORE SPECIFIC, THE FINANCIAL SECRETARY SAID HE HAD TO TREAD A DELICATE LINE IT WOULD BE IRRESPONSIBLE TO MAKE A COMPLETELY UNCONDITIONAL STATEMENT.
AND
"CLEARLY, WE MUST HAVE REGARD TO ANY MAJOR CHANGES IN OUR PRESENT OR PROSPECTIVE FUTURE FINANCIAL POSITION.
"WE ALSO NEED TO GIVE CAREFUL THOUGHT TO WHERE IN THE TAX BAND CON CONCESSIONS WOULD BE MOST HELPFUL AND EQUITABLE. AND TO THE BALANCE BETWEEN IMPROVEMENTS ΤΟ THE TAX BANDS AND INCREASES IN THE ALLOWANCES." HE SAID.
MR MACLEOD SAID HE HAD ALREADY MADE IT CLEAR THAT HE DID NOT BELIEVE THAT TAXATION WAS THE PRIME CONCERN OF THE SANDWICH CLASS AND HE WAS CONVINCED THAT THEIR MAJOR ANXIETY WAS THE HIGH COST OF HOUSING.
A PRIORITY
"I MADE THIS ISSUE A PRINCIPAL THEME OF MY MAIDEN SPEECH IN THIS COUNCIL LAST NOVEMBER. AFFORDABLE HOUSING REMAINS ITEM ON MY AGENDA, HE SAID.
TH
/MR MACLEOD