WEDNESDAY, MARCH 30, 1994
LEVEL, FOCUSED
ESPECIALLY
"COMPOUND GROWTH OF THIS INFRASTRUCTURE AND THE SOCIAL SERVICES, HAS ENABLED US TO EXPAND SERVICES AT A DRAMATIC PACE."
++
ON
OUR
HE SAID THIS WAS THE ANSWER TO THOSE WHO PRODUCED YET AGAIN THE RATHER TIRED ARGUMENT THAT TAX CONCESSIONS DID NOT HELP THE LESS WELL- OFF.
—
IN MOST "OF COURSE THEY DON'T, BECAUSE IN HONG KONG, UNLIKE OTHER PLACES IN THE WORLD, THE LESS WELL-OFF ARE VIRTUALLY TAX-FREE
OUR EXPENDITURE ON WE HELP
NOT THROUGH TAX CUTS BUT THROUGH THEM PUBLIC HOUSING AND THE SOCIAL SERVICES.
'AND INCIDENTALLY THAT IS ALSO PART OF THE ANSWER TO THE ANNUAL INCOME REFERENCES TO THE GINI COEFFICIENT AND OTHER SUCH MEASURES OF DISTRIBUTION THEY DON'T TAKE INTO ACCOUNT THE BENEFITS DERIVED
THEY SENSE GOVERNMENT EXPENDITURE AND SUBSIDIES, AND IN THAT MISLEADING.
H
-
FROM
ARE
THIS WILL
PROUD OF THE HE SAID THE GOVERNMENT SHOULD BE ANYTHING BUT
ΤΟ UNDERLINE INCREASES IN SPENDING ON THE SOCIAL SERVICES. POINT, RECURRENT EXPENDITURE OVER THE LAST FIVE YEARS TO 1994/95 HAVE INCREASED:
ON HEALTH, TO $17.1 BILLION FROM $6 BILLION, AN INCREASE OF 70% IN REAL TERMS;
ON
WELFARE. SOCIAL
TO $11.3 BILLION FROM INCREASE OF 53% IN REAL TERMS; AND
$4.4
BILLION,
AN
ON EDUCATION, TO $25.8 BILLION FROM $11.2 BILLION, AN OF 36% IN REAL TERMS.
INCREASE
LOOPHOLE IN SERVICE COMPANIES MUST BE CLOSED
#
THE LOOPHOLE USED BY SOME WELL-OFF PEOPLE TO PAY LESS
THE FINANCIAL SECRETARY, MEANS OF SERVICE COMPANIES MUST BE CLOSED, THE HON SIR HAMISH MACLEOD, SAID TODAY (WEDNESDAY).
TAX BY
ΤΟ $500
THERE MAY BE OVER 4,000 CASES WHERE SERVICE COMPANIES ARE BEING USED TO AVOID TAX, INVOLVING AN AMOUNT OF TAX OF ABOUT $400 MILLION A YEAR.
W
RESOURCES
'I WOULD FEEL FULLY JUSTIFIED IN PUTTING SIGNIFICANT
OF AND SOME HARD-HITTING LEGISLATION IN PLACE TO GO AFTER THAT AMOUNT
DEBATE IN THE MONEY." SIR HAMISH SAID, WHEN CONCLUDING THE BUDGET LEGISLATIVE COUNCIL.
THE PUBLIC'S THE SYSTEM WAS TAX THAN
HE SAID THERE WAS ALSO THE CORRODING EFFECT ON FAITH IN THE TAX SYSTEM, IF IT WAS PERCEIVED THAT UNFAIR, AND SOME WELL-OFF PEOPLE GOT AWAY WITH PAYING LESS
OTHERS,
/"THIS LOOPHOLE