XN000022-1984-03-29 — Page 21

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THURSDAY, MARCH 29, 984

AS A CONSEQUENCE, FOREIGN CORPORATIONS WITH THE INTENTION OF DEVELOPING BUSINESS IN HONG KONG MIGHT HAVE TO PAY DOUBLE TAX BECAUSE OF THE LACK OF ANY TAX ARRANGEMENTS BETWEEN HONG KONG AND OTHER COUNTRIES, SHE ADDED.

ON SALARIES TAX, MRS FAN FELT THAT THE TWO PER CENT INCREASE IN THE STANDARD RATE WAS ACCEPTABLE BUT SHE RECOMMENDED THAT CONSIDERATION BE GIVEN TO INCREASING THE CURRENT PLATFORM OF $10 000 TO, SAY $15 000-$20 000, TO GIVE SOME RELIEF TO THE MIDDLE CLASS.

SHE CONCEDED THAT THE MIDDLE CLASS HAD THE OBLIGATION TO PAY TAX, BUT NOTED THAT MOST OF THEM DID NOT MEET THE CRITERIA FOR ENJOYING VARIOUS PROGRAMMES HEAVILY SUBSIDISED BY THE GOVERNMENT.

+WE MUST NOT FORGET THAT HONG KONG'S SANDWICH CLASS IN GENERAL HAVE TO ARRANGE THEIR OWN HOUSING, PAY RATES AND MEDICAL EXPENSES, ETC.

+THEIR ACTUAL QUALITY OF LIFE MAY NOT BE SIGNIFICANTLY BETTER THAN THOSE EARNING LESS, BUT LIVING IN PUBLIC HOUSING, AND OUTSIDE THE TAX NET,+ SHE SAID.

NOTING THAT THE IMPLEMENTATION OF HER PROPOSED INCREASE

IN TAX PLATFORM WOULD REDUCE GOVERNMENT REVENUE, MRS FAN

SUGGESTED THAT THE MAXIMUM STANDARD RATE OF THE SALARIES TAX BE PUT ON PAR WITH THE CORPORATE PROFITS TAX.

IN SO DOING, SHE ILLUSTRATED BY WAY OF EXAMPLES THAT THOSE EARNING LESS THAN $23 300 PER MONTH CAN PAY LESS, WHILE THOSE EARNING MORE THAN $42 000 PER MONTH WILL PAY MORE.

+THUS THE MIDDLE CLASS MAY DISCHARGE THEIR OBLIGATIONS WHEREAS REALLY WELL-OFF PEOPLE MAY BEAR A GREATER SHARE OF TAX, SHE ADDED.

IN ADDITION, FURTHER INCREASES IN BETTING DUTY COULD BE CONSIDERED, SHE SUGGESTED.

+THESE INCREASES WOULD NOT ONLY PRODUCE ADDITIONAL REVENUE, BUT ALSO SERVE TO COOL DOWN THE BETTING CRAZE OF SOME OF THE ORDINARY FOLKS, THEREBY PROMOTING SOCIAL STABILITY, SHE SAID.

ON THE APPLICATION FOR AN INCREASE IN TOLL CHARGES BY THE CROSS HARBOUR TUNNEL, MRS FAN SAID THAT IT WAS NOT JUSTIFIABLE AS THE COMPANY'S NET PROFITS IN 1983 TOTALLED $150 MILLION.

+MOREOVER, IN PROPOSING TAX ON PRIVATE CARS USING THE TUNNEL, THE FINANCIAL SECRETARY HAS STATED THAT IT IS, HOWEVER, REASONABLE IF THESE NEW MEASURES REDUCE CROSS HARBOUR TRAFFIC, THE COMPANY SHOULD RECEIVE EQUITABLE COMPENSATION FOR REVENUE LOST, SHE ADDED.

ON THE ALLOCATION FOR EDUCATION, SHE WELCOMED THE INCREASE IN FUNDS FOR THE CONSTRUCTION AND EQUIPPING OF NEW SCHOOL BUILDINGS.

/BUT SHE