XN000022-1977-03-31 — Page 16

THURSDAY, MARCH 31, 1977

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GOVT. URGED TO RE-INTRODUCE DEPENDENT PARENT'S ALLOWANCE

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THE HON. WONG LAM TODAY URGED THE GOVERNMENT TO RE-INTRODUCE THE DEPENDENT PARENT'S ALLOWANCE.

HE MADE THE APPEAL DURING RESUMED BUDGET DEBATE IN THE LEGISLATIVE COUNCIL.

BASED ON THE DATA SUPPLIED BY THE FINANCIAL SECRETARY MR. WONG ESTIMATED THAT BY ADOPTING THE ORIGINAL $2,000 DEPENDENT PARENT'S ALLOWANCE, THE LOSS TO REVENUE WOULD BE ROUGHLY ONLY BETWEEN $8 TO $12 MILLION.

+THIS SHOULD HAVE LITTLE SIGNIFICANT EFFECT ON OUR BALANCE OF PAYMENTS FOR THE NEXT FINANCIAL YEAR. ON THE OTHER HAND, IT WOULD BE OF GREAT IMPORTANCE TO 20 PER CENT OF OUR TAXPAYERS AND WOULD SATISFY THE EXPRESSED WISHES OF THE GENERAL PUBLIC,+ HE SAID.

HE RECALLED THAT IN 1973/74 THE GOVERNMENT ABOLISHED THE ALLOWANCE MAINLY ON THE GROUNDS OF +ABUSE+ AND INEQUITY DUE TO TERRITORIAL LIMITATION+.

MR. WONG SAID, +ABUSE OR MISINFORMATION ON TAX RETURNS WAS MERELY A TECHNICAL PROBLEM. THE FUNDAMENTAL PRINCIPLE FOR ANY KIND OF TAX SYSTEM WAS THAT IT SHOULD MEET ACTUAL NEEDS.+

HE SAID THERE WOULD OF COURSE BE CERTAIN DISHONEST PEOPLE

BUT HE BELIEVED THEY WERE OF A LIMITED NUMBER.

+WE SHOULD LOOK FOR WAYS TO DEAL WITH THIS SMALL NUMBER OF BAD APPLES, BUT SHOULD NOT THROW OUT THE BABY WITH THE BATH WATER, HE ADDED.

MR. WONG POINTED OUT THAT WITH THE EXTENSIVE USE OF COMPUTER SERVICES THERE SHOULD NOW BE BETTER WAYS TO DETECT CASES OF MISINFORMATION THAN THREE OR FOUR YEARS AGO.

ADMINISTRATIVE DIFFICULTIES, HE ADDED, SUCH AS IN DEFINING +DEPENDENT PARENTS+ AND IN REQUIRING THE TAXPAYER TO ASCERTAIN WHETHER HIS BROTHERS OR SISTERS HAD MADE SIMILAR CLAIMS, SHOULD NOT BE TOO DIFFICULT TO SOLVE.

REFERRING TO INEQUITY DUE TO TERRITORIAL LIMITATION MR. WONG BELIEVED THAT THE NUMBER OF TAXPAYERS AFFECTED WAS VERY SMALL.

MR. WONG SAID, WHEN THE GOVERNMENT ABOLISHED THE DEPENDENT PARENT'S ALLOWANCE, THE PERSONAL ALLOWANCE WAS RAISED FROM $7,000 TO $10,000. THE INCREASE ALREADY TOOK INTO ACCOUNT THE NEED TO SUPPORT PARENTS.

/+HOWEVER,