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"This is a significant sum. Also, there would be serious difficulties in defining first-time home buyers without creating the potential for widespread abuse.
"I believe we should continue to invest in our existing housing programmes in order to provide direct assistance to those genuinely in need. Thus with great regret, I cannot agree to provide a concession of such a nature," Mr Tsang said.
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No change in corporate profits tax
The Financial Secretary, Mr Donald Tsang, proposes no change in the level of corporate profits tax.
Mr Tsang said comparisons with other countries in the region continued to support his view that the level of profits tax here was already very low.
A recent survey of senior executives in 16 industries found that 93 per cent of them were happy with the current tax arrangements.
"In any case, the cost to the revenue of reducing the rate of profits tax would be substantial. A one percentage point reduction would mean $1.7 billion of revenue forgone in 1996-7 and over $11 billion up to 1999-2000," he said today (Wednesday).
Mr Tsang also did not consider that the Government should provide further tax concessions to encourage expenditure on research and development.
"Expenditure on scientific research is fully deductible," he said.
The Government could do more to stimulate research and development but the tax system would be the wrong vehicle, he added.
End