XN000022-1983-06-08 — Page 9

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DAY, JUNE 8, 1983

HE ALSO THANKED THE GROUP FOR ITS UNDERSTANDING OF THE PRACTICAL DIFFICULTIES INVOLVED IN MEETING SOME OF THE POINTS IT RAISED WITH THE ADMINISTRATION.

MR BLYE LATER MOVED TWO AMENDMENTS AT THE COMMITTEE STAGE,

HE EXPLAINED THAT AN AMENDMENT TO CLAUSE 1 MEANT THAT THE ORDINANCE WOULD COME INTO OPERATION TOMORROW (THURSDAY, JUNE 9).

IN MOVING A SECOND AMENDMENT, FOR A NEW CLAUSE 18, HE SAID MANY EMPLOYERS IN HONG KONG UNDERTOOK, AS PART OF THE CONDITIONS OF EMPLOYMENT THEY OFFERED, TO PAY PASSAGES AND TRAVELLING EXPENSES OF EMPLOYEES AND THEIR FAMILIES.

THIS SECOND AMENDMENT WAS TO REMOVE ANY CONTRACTUAL LIABILITY FOR THE NEW TAX ON THE PART OF EMPLOYERS (INCLUDING THE GOVERNMENT) IN RESPECT OF EMPLOYEES WHO HAD THE PRESENT PASSENGER SERVICE CHARGE PAID AS PART OF THEIR CONDITIONS OF SERVICE.

*THE GOVERNMENT HAS THEREFORE CONSIDERED IT APPROPRIATE TO PROVIDE EXPLICITLY FOR THE REMOVAL OF ANY SUCH LIABILITY, BY THE ADDITION OF NEW CLAUSE 16.

+THE REASON FOR THIS IS THAT EMPLOYERS DO NOT NORMALLY PAY THEIR EMPLOYEES' PERSONAL TAXES. HOWEVER, IF INDIVIDUAL EMPLOYERS WISH TO ASSUME SUCH LIABILITY IN RESPECT OF THE AIR PASSENGER DEPARTURE TAX, THEY MAY OF COURSE DO SO, HE SAID.

PROVISION FOR CHANGE OF TAX SCALE WELCOMED

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A CLAUSE ENABLING THE LEGISLATIVE COUNCIL BY RESOLUTION TO AMEND THE SCALE OF THE AIR PASSENGER DEPARTURE TAX AS AND WHEN NECESSARY, WAS WELCOMED BY THE HON BILL BROWN TODAY.

MR BROWN WAS SPEAKING DURING THE RESUMED DESATE ON THE AIR PASSENGER DEPARTURE TAX BILL 1983 AT THE LEGISLATIVE COUNCIL.

MR BROWN, CONVENOR OF THE UNOFFICIAL MEMBERS' MONETARY POLICY GROUP EXAMINING THE BILL, SUPPORTED THE MOTION.

HE SAID THE UNOFFICIAL MEMBERS' GROUP HAD NO REAL ARGUMENT WITE THE PRINCIPLE OF THE BILL WHICH IMPOSED A TAX ON PASSENGERS DEPARTING BY AIR FROM HONG KONG.

+

+ AND A NUMBER OF MY UNOFFICIAL COLLEAGUES, HOWEVER HAVE ALREADY EXPRESSED RESERVATIONS IN THE BUDGET DEBATE AS TO THE AMOUNT OF THIS TAX.

+WE BELIEVE IT UNFORTUNATE OUR SUGGESTION THAT THE TAX ALSO E LEVIED ON DEPARTURES BY SEA, THUS ENABLING IT TO BE REDUCED, HAS NOT BEEN ACCEPTED BY THE ADMINISTRATION, HE SAID.

HOWEVER.