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WEDNESDAY, APRIL 1, 1992
HE SAID FIVE SUCH REVIEWS HAD BEEN CONDUCTED SINCE 1980 AND THE EFFECT: TAXPAYERS HAD BENEFITED FROM A REDUCTION IN THEIR EFFECTIVE TAX RATES.
HE SAID SEVERAL ALTERNATIVE PACKAGES HAD BEEN PROPOSED AND ATTRACTED SOME SUPPORT.
"THIS IS NOT SURPRISING AS MOST PEOPLE FIND THE THOUGHT OF PAYING LESS TAX PERFECTLY AGREEABLE.
"BUT THERE IS LITTLE LOGIC BEHIND THESE ALTERNATIVE AND THEY ARE ALL VERY EXPENSIVE, HE SAID.
PROPOSALS,
THE FINANCIAL SECRETARY SAID THE PROPOSAL BY MEMBERS OF THE CO- OPERATIVE RESOURCES CENTRE (CRC) HAD SUGGESTED A 22 PER CENT INCREASE IN PERSONAL ALLOWANCES AND A WIDENING OF THE TAX BANDS. HE SAID OVER THE NEXT FIVE YEARS, THESE PROPOSALS WOULD COST AN ADDITIONAL $18 BILLION.
THE MODIFIED PROPOSALS OF MEMBERS OF THE UNITED DEMOCRATS OF HONG KONG (UDHK) WOULD COST AN ADDITIONAL $31 BILLION OVER THE NEXT FIVE YEARS.
HE ALSO COULD NOT ACCEPT THE CRITICISM OF SOME MEMBERS THAT HIS PROPOSALS HAD NOT CONTRIBUTED TO REDISTRIBUTING THE WEALTH OF THE COMMUNITY.
"I CANNOT ACCEPT THIS VIEW. I THINK THE NEEDS OF THE DISADVANTAGED ARE MOST EFFECTIVELY DEALT WITH BY CAREFULLY TARGETING OUR EXPENDITURE PRIORITIES," HE SAID.
HE ALSO RESTATED HIS APPROACH IN FRAMING HIS REVENUE PROPOSALS:
* HE HAD CAREFULLY CHOSEN TAX CONCESSIONS WHICH PROVIDED RELIEF
FOR ORDINARY FAMILIES.
* HE HAD TAKEN ACCOUNT OF THE NEED TO REDUCE THE DEPENDENCE ON
POTENTIALLY VOLATILE SOURCES OF REVENUE.
HE
AND HE HAD BEEN CAREFUL TO AVOID ADDING TO INFLATIONARY PRESSURES.
ALSO SAID MEMBERS' ANXIETIES HAD BEEN MOST SHARPLY FOCUSED ON HIS SALARIES TAX PROPOSALS. HE SAID THE FACTS WERE:
PERSONAL INCOMES OTHER THAN SALARIES WERE GENERALLY EXEMPT
FROM TAX.
HAD BEEN PROGRESSIVELY
THE STANDARD RATE OF SALARIES TAX REDUCED SINCE THE MID 1980S FROM 17 PER CENT TO 15 PER CENT. HONG KONG AT PRESENT ENJOYED ONE OF THE LOWEST RATES IN THE WORLD.
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