XN000022-1973-03-02 — Page 23

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Friday, March 2, 1973

"Finally, considerable paper work was involved in that claims for relief were required to be supported by proof of payment. Members of the Life Assurance

Association of Hong Kong co-operated fully in supplying forms to their policy

holders to ascertain details. However, the bulk of life assurance business is

written by non-resident eorporations and most of the investment schemes are

run by these corporations which resulted in delay in the processing of claims.

"These then were the considerations underlying my decision to propose

in the budget speech that the selective allowance of insurance relief should

be abolished, but as part of a package deal, ao very few taxpayers indeed will

be worse off. The fact is that it is questionable whether insurance relief

has a place in any tax system for I do not see why fiscal help should be given

to sell a particular form of savings. This is particularly so where the

schedular rates and the low standard rate provide ample incentive for thrift

anyway.

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