XN000022-1984-03-29 — Page 28

THURSDAY, MARCH 29, 1984

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BENEFIT SEEN FOR LOWER MIDDLE INCOME GROUPS

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THE HON YEUNG PO-KWAN TODAY DESCRIBED THE FINANCIAL SECRETARY'S PROPOSED BUDGET AS A +CALM, STEADY, CLEARLY UNDERSTOOD AND BALANCED APPROACH.+

SPEAKING AT THE RESUMED BUDGET DEBATE, MR YEUNG SAID ALTHOUGH THE BUDGET WAS UNFAIR TO THE MIDDLE CLASS, IT SHOULD BE UNDERSTOOD THAT NO BUDGET HAD EVER BEEN ABLE TO BENEFIT ALL.

HE SAID THAT MOST MEMBERS OF THE PUBLIC CONSIDERED THE BUDGET TO BE MODERATE AND ACCEPTABLE.+

ITS OUTSTANDING FEATURE IS THE CARE FOR THE LOWER MIDDLE AND THE LOWER INCOME GROUPS SO THAT THEIR BURDENS WILL NOT BE UNDULY HEAVY, HE SAID.

BUT HE ADDED THAT THE GOVERNMENT COULD HAVE CONSIDERED RAISING TAX THRESHOLDS, LOWERING THE PROGRESSIVE RATES, AS WELL AS EXPANDING THE TAX BANDS.

HE SAID THAT THIS WOULD RELEASE MANY LOW-SALARIED PEOPLE FROM THE TAX NET AND NIGHT REDUCE THE BURDEN OF THE MIDDLE INCOME GROUP AS WELL AS REDUCE THE WORKLOAD PLUS ADMINISTRATIVE EXPENSES OF THE INLAND REVENUE DEPARTMENT.

+AS FOR PEOPLE IN THE HIGH-SALARY BRACKET, THE STANDARD RATE CAN STILL BE CORRESPOND INGLY RAISED TO ENSURE THERE WILL BE NO LOSS IN REVENUE YIELDS,+ MR YEUNG SUGGESTED.

IN HIS VIEW, APART FROM PLANNING TO INCREASE REVENUE, THE GOVERNMENT SHOULD CONSIDER WHETHER MOTORISTS OF THE +SANDWICHED CLASS+ AND TAXI OPERATORS WOULD BE AFFECTED.

THE FINANCIAL SECRETARY PROPOSED TO LEVY A TAX ON VEHICLES USING THE CROSS HARBOUR TUNNEL TO BOOST REVENUE ON THE ONE HAND AND TO RESTRAIN USAGE OF THE TUNNEL ON THE OTHER.

+IT STANDS TO REASON THAT AS THESE TWO OBJECTIVES CAN BE ACHIEVED, FURTHER APPLICATIONS FOR INCREASES IN THE TOLL CHARGES ON VEHICLES USING THE TUNNEL SHOULD NOT BE APPROVED MAINLY BECAUSE THE CROSS HARBOUR TUNNEL COMPANY IS NOT SUFFERING ANY LOSS BUT ONLY EARNING LESS PROFITS, + MR YEUNG SAID,

HE SAID THAT THE PROPOSED BUDGET ALSO REFLECTED THE GOVERNMENT'S OPTIMISM AND CONFIDENCE IN HONG KONG'S LONG-TERM FUTURE.

+EVEN WITH ECONOMIC RESTRAINTS, IT STILL MAINTAINS ITS COMMITMENTS TO SOCIAL WELFARE, MEDICAL AND HEALTH, EDUCATION SERVICES, PUBLIC WORKS PROGRAMMES AND LONG-TERM DEVELOPMENT,+ HE POINTED OUT.

/MAINTAINING THAT