XN000022-1982-03-25 — Page 19

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THURSDAY, MARCH 25, 1982

MORE TAX CUTS FOR HIGH TECHNOLOGY URGED

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THE HON CHAN KAM-CHUEN CALLED FOR FURTHER TAX CONCESSIONS TO BE MADE FOR HIGH-LEVEL TECHNOLOGY INDUSTRIES.

AND HE SUGGESTED THAT THE MINIMUM QUALIFYING CRITERIA FOR SUCH CONCESSIONS SHOULD BE SIMILAR TO THOSE SET BY THE INDUSTRIAL ESTATES CORPORATION FOR OPERATIONS IN ITS ESTATES.

MR CHAN WELCOMED THE PROPOSED TAX CONCESSIONS FOR NEW PLANT, EQUIPMENT AND INDUSTRIAL BUILDINGS.

+HOWEVER, I FEEL THAT FURTHER CONCESSIONS SHOULD BE MADE FOR A FIXED PERIOD FOR NEW CAPITAL-INTENSIVE EQUIPMENT FOR NEW, RELATIVELY HIGH-LEVEL TECHNOLOGY INDUSTRIES WHICH HONG KONG REQUIRES FOR ITS DIVERSIFICATION PROGRAMME.+

THE TRANSFER OF NEW TECHNOLOGY, HE SAID, PROVIDES NOT ONLY PROFITS FOR THE INVESTORS, BUT ALSO MORE EMPLOYMENT AND TRAINING OPPORTUNITIES FOR LOCAL WORKERS.

+THESE LONG-TERM BENEFITS ARE BY FAR MORE IMPORTANT TO THE FUTURE OF HONG KONG THAN THE SHORT TERM LOSS IN TAX REVENUE,+ HE SAID.

ON SEPARATE TAXATION FOR MARRIED WOMEN, MR CHAN URGED THE GOVERNMENT TO GIVE THE SUBJECT THE MOST SYMPATHETIC CONSIDERATION AGAIN NEXT YEAR.

HAS

THE PRESENT COMBINED ASSESSMENT OF WORKING COUPLES TOGETHER WITH OTHER FACTORS, COMPELLED MANY TO CHOOSE CO-HABITATION INSTEAD OF FORMAL MARRIAGE, HE SAID.

+THERE IS IN FACT A VERY HIGH SOCIAL COST TO PAY, HE SAID. +OTHER THAN SERIOUSLY UNDERMINING THE TRADITIONAL CHINESE VALUE OF THE FAMILY AS A UNIT, THERE WOULD BE UNWANTED CHILDREN AND OTHER ASSOCIATED PROBLEMS.+

AS REGARDS EXEMPTION OF FOREIGN CURRENCY DEPOSITS FROM INTEREST TAX, HE SAID IT WOULD BE BENEFICIAL TO OUR MONEY MARKET IN THAT IT +ŘEMOVES ONE OF THE MAJOR STUMBLING BLOCKS WHICH PREVENT HONG KONG FROM COMPETING WITH OTHER FINANCIAL CENTRES+.

THE REDUCTION OF INTEREST TAX ON HONG KONG DOLLAR DEPOSITS TO 10 PER CENT IS ANOTHER STEP IN THE RIGHT DIRECTION, HE ADDED.

+ IT IS ONLY APPROPRIATE THAT CONCESSIONS IN SALARIES TAX SHOULD BE ACCOMPANIED BY A LOWERING OF INTEREST TAX AS THIS WOULD ENCOURAGE MORE PRUDENT PEOPLE TO PUT THEIR MONEY INTO SAVINGS FOR FURTHER INVESTMENTS, RATHER THAN TO OVERSPEND TO FUEL IMPORTED INFLATION.+

TURNING TO THE CIVIL SERVICE, MR CHAN WARNED AGAINST THE EXCESSIVE OVERLAPPING OF DUTIES.

/CITING THE