XN000022-1983-04-14 — Page 9

THURSDAY, APRIL 14, 1983

8.

+THUS I SHOULD BE OBLIGED TO CAST THE NET WIDE TO PRODUCE THE REMAINING $1 100 MILLION, HE EXPLAINED, IN REFERENCE TO SUGGESTIONS THAT $1.5 BILLION BE RAISED THROUGH INCREASED SALARIES TAX.

IN THIS CASE, HE SAID, IT WOULD BE NECESSARY TO REDUCE THE TAX THRESHOLDS TO THE LEVELS PREVAILING IN 1979-80, REMOVING THE VERY CONSIDERABLE CONCESSIONS MADE TO THE LOWER AND MIDDLE INCOME GROUPS IN THE BUDGETS FOR THE THREE PREVIOUS FISCAL YEARS.

+NOT ONLY WOULD SUCH A MOVE INCREASE CONSIDERABLY THE TAX BURDEN OF ALL WHO ARE PRESENTLY IN THE NET, BUT IT WOULD ALSO BRING IN NOT LESS THAN A QUARTER OF A MILLION, AND PERHAPS AS MANY AS 300 000, NEW TAXPAYERS ALL OF WHOM WOULD BE FROM THE LOWER INCOME GROUP WHO NOW PAY NOTHING,+ MR BREMRIDGE SAID.

RESPONDING TO REMARKS BY DR THE HON RAYSON HUANG ON TAX BANDS, MR BREMRIDGE SAID THAT THE PRESENT BANDS DID NOT GENERALLY CAUSE A REDUCTION IN AFTER-TAX TAKE-HOME PAY BECAUSE OF THE EFFECTS OF INFLATION.

+THE TRUTH REMAINS THAT, WITH THE EXCEPTION OF SOME SINGLE PEOPLE WITHIN A FAIRLY NARROW INCOME RANGE WHO HAVE LOST A FRACTIONAL AMOUNT, THE VAST MAJORITY OF TAXPAYERS ENJOY LOWER EFFECTIVE RATES THAN THEY DID FIVE YEARS AGO, UNLESS OF COURSE, AS FORTUNATELY IS NOT UNCOMMON, THEIR INCREMENTS TO INCOME HAVE OUTSTRIPPED THE RATE OF INFLATION.+

NEED FOR NEW TAXES ON TOURISM EXPLAINED

*****

WHEN THERE WERE ABUNDANT SURPLUSES THERE WAS NO PRESSING NEED TO PROPOSE SUCH MEASURES AS AN INCREASED HOTEL TAX, A NEW AIRPORT TAX AND A SMALL LOWERING OF THE HONG KONG TOURIST ASSOCIATION SUBVENTION, THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE TOLD THE LEGISLATIVE COUNCIL TODAY.

BUT THE PICTURE HAD NOW CHANGED, AND HE WAS SEEKING ADDITIONAL REVENUE BY PLACING NEW BURDENS ON THOSE WHO COULD BEST AFFORD THEM, HE SAID AT THE RESUMED BUDGET DEBATE.

MR BREMRIDGE WAS REFERRING TO CONCERN EXPRESSED BY SEVERAL UNOFFICIAL MEMBERS ON THE EFFECTS ON TOURISM OF THE NEW TAXES PROPOSED BY HIM.

WHILE SHARING THEIR CONCERN, HE HAD ALSO NEED TO RESTRAIN PUBLIC SECTOR EXPENDITURE AND TO RAISE ADDITIONAL TAXES, HE SAID.

HIS PROPOSALS