28
THURSDAY, MARCH 4, 1993
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QUESTION:
GOOD MORNING. TWICE, THIS MORNING YOU HAVE SAID THAT A COUPLE OF POINTS HAVE BEEN RAISED WHICH HAVE NOT BEEN PREVIOUSLY BROUGHT TO YOUR ATTENTION, MAYBE I WOULD LIKE TO BRING A THIRD ONE ΤΟ YOUR ATTENTION, AND THAT IS THE CASE OF THE EXPAT. I GET PAID IN STERLING AND I AM LEVIED 10 PER CENT OF MY SALARY FOR THE FACT THAT I AM PROVIDED WITH A FLAT. UNFORTUNATELY, NOBODY TAKES ACCOUNT OF THE FACT THAT I HAVE A UK HOME, I PAY MORTGAGE, I PAY POLL-TAX, HEATING BILLS AND MAINTENANCE FOR ALL THAT. DURING THE LAST YEAR THE SALARY WAS LEVIED AT 13 TO THE POUND, THAT IS THE CONVERSION FACTOR THAT YOU, THE GOVERMENT, USE, AND YET I AM BRINGING OVER MONEY NOW AT 11 TO THE POUND, SO MY NET TAX IS ABOUT 25 PER CENT OF MY SALARY. CAN YOU DO ANYTHING FOR US, PLEASE?
FS:
BEFORE.
WELL YOU ARE RIGHT, I HAVE NEVER HEARD OF THE PROBLEM I DON'T KNOW WHAT YOUR PARTICULAR CIRCUMSTANCES ARE BUT I MEAN BASICALLY, I CAN ONLY DEAL WITH THE HONG KONG TAXATION SYSTEM. AS FAR AS I KNOW, AS BETWEEN UK AND HONG KONG, THERE IS, IN EFFECT, A DOUBLE TAXATION ARRANGEMENT, THERE IS NOT ACTUALLY, I DON'T THINK, AN AGREEMENT, BUT I DON'T THINK THAT PEOPLE ARE TAXED TWICE. BUT THAT IS NOT QUITE YOUR POINT. BUT YOUR POINT WAS A BIT TOO COMPLICATED FOR ME TO UNDERSTAND, BUT BASICALLY, YOU ARE RIGHT THAT THIS IS NOT A PROBLEM I HAVE COME ACROSS BEFORE. IF YOU WOULD LIKE TO WRITE TO ME AND LET
ME KNOW THE DETAILS OF IT, I CAN HAVE A LOOK, BUT ON THE FACE OF IT I DON'T THINK, WITH RESPECT, THAT IT IS PROBABLY MY PROBLEM AS OPPOSED TO THE UK TAX PROBLEM.
KIT CUMMINGS:
I WONDER WHETHER A TAX RELEASE, SPECIFICALLY FOR EXPATRIATES, WOULD NOT BE A BIT POLITICALLY SENSITIVE AT THE MOMENT. THANK FOR YOUR CALL ANYWAY, AND MR MACLEOD IS GOING TO HAVE A LOOK IT.
QUESTION:
TAX ALLOWANCE.
AT
I WOULD LIKE TO ASK THE FINANCIAL SECRETARY ABOUT THE NOW THAT IS INCREASED BY $10,000 BUT WHY IS IT THERE IS AN INCREASE ON FUEL TAX? SO IT SEEMS THAT HE IS PLAYING WITH FIGURES. SO HB IS NOT REALLY BENEFITING THE SANDWICH CLASS BECAUSE LET'S SAY FOR A SANDWICH CLASS MEMBER HE USES $400 ON PETROL A
WEEK, IN OTHER WORDS, IN A YEAR HE WILL BE SPENDING $1,000 MORE, AND LET'S ASSUME THAT THE SANDWICH CLASS MEMBER EARNS AN ANNUAL SALARY OF $225,000, SO UNDER THE EXISTING TAX SYSTEM HE WILL BE PAYING $10,000 TAX, AND IN THE NEW TAX SYSTEM HE WILL BE PAYING $7,000 TAX BUT HE WILL BE PAYING AN EXTRA $1,000 ON FUEL TAX. IN OTHER WORDS, HE IS ONLY ENJOYING A CONCESSION OF $2,
,000. IS IT REALLY HELPFUL? YOU HAVE DONE SOME FINE CALCULATIONS, IT SEEMS, BUT STILL THAT IS WHAT WE GET FROM THE BUDGET. OK, SO LET'S LISTEN TO THE EXPLANATION THEN, HOW IS THAT SUM WORKED OUT?
FS:
WELL PERHAPS YOUR MATHS IS ABOUT AS GOOD AS OUR MATHS. I HAVE NEVER DREAMT THAT ANYONE WOULD SAY THAT THE INCREASE IN FUEL TAX, WHICH IS ONLY AN INFLATION INCREASE, WOULD OFFSET THE CONCESSIONS ON SALARIES TAX. I MEAN JUST TO REPEAT A FIGURE: A MARRIED COUPLE WITH TWO CHILDREN, IN THE SANDWICH CLASS, THAT IS TO SAY AT $18,000 A MONTH, THEY WILL BE SAVING, UNDER THESE CONCESSIONS, 56 PER CENT OF THEIR TAX, OR IN DOLLARS $8,350. NOW I CANNOT BELIEVE THAT THE INFLATION INCREASE IN FUEL TAX SUBSTANTIALLY BITES INTO THAT VERY MAJOR CONCESSION.
/QUESTION