XN000022-1984-10-25 — Page 25

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THURSDAY, OCTOBER 25, 1984

+FOR EXAMPLE, THERE ARE SEVERAL PROVISIONS IN THE INLAND REVENUE (AMENDMENT) ORDINANCE WHICH I UNDERSTAND ARE CAUSING WIDESPREAD CONCERN AMONG THE BUSINESS AND INVESTING COMMUNITY, + HE SAID.

FIRST, THERE WAS CONCERN THAT THE RATE OF TAXATION ON PROFITS AND SALARIES WOULD BE GRADUALLY ON THE INCREASE AND THAT THE TWO PER CENT INCREASE IMPOSED LAST YEAR ON BOTH THESE TAXES WAS ONLY A BEGINNING.

SECONDLY, THE PROVISIONS WHICH IMPOSED RESTRICTIONS ON THE TREATMENT OF INTEREST PAYMENTS, AND THAT OF INCLUDING OFFSHORE INTEREST INCOME DERIVED BY NON-FINANCIAL INSTITUTIONS IN THE TAX NET, HAD BOTH ALARMED BUSINESSMEN AND INVESTORS.

MR TONG WARNED THAT THESE CONCERNS COULD DO MORE HARM THAN GOOD TO CONFIDENCE.

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