XN000022-1973-03-14 — Page 13

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Wednesday, March 14, 1973

GOVERNMENT ASKED TO RETAIN TAX RELIEF

For Dependent Parents And Insurance

The Hon. Mrs. Ellen Li today joined force with a number of other

Legislative Councillors in urging the Financial Secretary to drop his

proposal to abolish tax relief for dependent parents and life insurance.

The tax system as proposed, she said, gave the general public the

unfavourable impression that the Government favoured more spending for

pleasure on drinks and films but discouraged provision through insurance

for protection of families and support of dependent parents.

Speaking in the budget debate, she said it was "unwise in principle"

to abolish tax relief on insurance at this juncture.

She described insurance as one of the few practical forms of

protection for a young family to provide against emergencies such as

unemployment, sudden illness and untimely death.

"In lieu of a practicable social security system, I would have

thought that our Government would and should encourage the working public

to save for a rainy day for themselves and their families, rather than to

let them become a public charge on society.

"Government provides insurance for the families of civil servants

by making contributions to the Widows and Orphans Fund compulsory; I do

not see the logic of taking away the incentive from the public," Mrs. Li said.

She also proposed that the Government should consider raising tax-free

interest rate for savings accounts.

/She described