XN000022-1973-04-25 — Page 23

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Wednesday, April 25, 1973

NEW BILL TO IMPLEMENT TAX PROPOSALS

The Financial Secretary, the Hon. C.P. Haddon-Cave, today rejected a

suggestion by some members of the Legislative Council to re-insert allowances

for dependent parents and life insurance abolished under his tax reform proposals.

He said this was just not possible because the proposals were "interlocked

to form a unified package."

The Financial Secretary was speaking in the Legislative Council this

afternoon when he moved the second reading of the Inland Revenue (Amendment)

(No. 2) Bill 1973.

He said: "The fact is that, because of the growing inadequacy of

the basic allowances over the years and the reluctance, in the uncertain

circumstances of those times, to forego too much revenue, fundamental reform

has not been possible until now."

Mr. Haddon-Cave said the three selective allowances of low income

relief, working wife allowance and dependent parent allowance were introduced

as palliatives to alleviate hardship, but at an administrative cost and with

"inequitable results."

He stood firm in his belief that the relief granted since the

war for insurance premia and similar payments was "quite inappropriate" in

a low tax system

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particularly one that was being reformed.

The Financial Secretary defended his decision to refrain from proposing

that personal allowances should be retained at all levels of income charging

only net chargeable income to tax.

/This,