XN000022-1985-03-28 — Page 30

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THURSDAY, MARCH 28, 1985

+UNFORTUNATELY, AT THIS TIME, INCREASES IN TAXES ARE INEVITABLE, BUT THE FINANCIAL SECRETARY ACKNOWLEDGES THAT ENTERPRISE AND HARD WORK ARE STIMULATED BY LOW DIRECT TAXATION, AND HE HAS DECLARED THAT THOSE WHO CREATE WEALTH FOR HONG KONG ARE NEITHER UNREASONABLY PENALISED NOR DISCOURAGED, HE SAID.

SIR ROGER WAS PLEASED THAT GOVERNMENT WAS ALLEVIATING THE BURDEN ON THE MIDDLE INCOME GROUP OR THE +SANDWICH SOCIETY+.

+THE TAX CONCESSIONS FOR THIS GROUP MAY NOT BE AS MUCH AS ONE MIGHT IDEALLY WISH; NONETHELESS, THEY ARE A POSITIVE INDICATION OF GOVERNMENT'S CARE FOR THOSE TAXPAYERS AND SHOULD BE WELCOMED ESPECIALLY AT THIS TIME OF UPWARD PRESSURE TO INCREASE REVENUE.

+THIS CONCESSION MEANS GOVERNMENT GIVING UP APPROXIMATELY $150 MILLIONS IN 1985-86 AND $210 MILLIONS IN A FULL YEAR,+ HE SAID.

SIR ROGER NOTED THAT THE FINANCIAL SECRETARY HAD BALANCED THIS BY IMPOSING TAX ON SOFT DRINKS AND COSMETICS, ON WHICH UNOFFICIAL MEMBERS HAD RECEIVED REPRESENTATIONS.

+WE ARE TOLD THAT COSMETIC ITEMS AND PERFUMES ARE MORE: POPULAR WITH VISITORS THAN TO OUR LOCAL FAIR SEX WHO OBVIOUSLY NEED LESS TO IMPROVE THEIR QUALITIES; THAT SOME 80 PER CENT OF PERFUME AND 50 PER CENT OF COSMETIC ITEMS WERE PURCHASED BY TOURISTS THROUGH RETAILERS; THAT OUR NEIGHBOURING CITIES HAVE DONE AWAY WITH DUTY ON THESE GOODS; THAT HONG KONG HAS LITTLE TO OFFER OTHER THAN SHOPPING AND WE ARE TAKING YET ANOTHER. STEP TOWARDS DISCOURAGING VISITORS BY DIMINISHING THIS ATTRACTION, HE SAID.

ON THE SIZEABLE EXPENDITURE ON SOCIAL SERVICES, SIR ROGER SAID IT BORE OUT GOVERNMENT'S STATED COMMITMENT TO CARE FOR THE LESS WELL-OFF MEMBERS OF THE COMMUNITY, AND THOSE WHO WERE WAITING PATIENTLY FOR PUBLIC HOUSING SHOULD BE PLEASED TO NOTE THAT THE PRODUCTION OF FLATS WAS PROGRESSING ON-COURSE AND THE IR DAYS OF WAITING WERE NUMBERED.

HE BELIEVED THE FINANCIAL SECRETARY'S BUDGET PROPOSALS WERE REASONABLE, ALTHOUGH SOME TRADES AND CERTAIN SECTORS OF OUR COMMUNITY WOULD BE AFFECTED AND THEY MIGHT NOT THINK IT SO.

F

HE TRUSTED THAT CAREFUL ATTENTION AND CONSIDERATION WOULD BE GIVEN TO ALL THAT HAD BEEN SAID DURING THE TWO-DAY DEBATE, ADDING THAT THE UNOFFICIAL MEMBERS HAD OFFERED SEVERAL IMAGINATIVE AND POSITIVE CONTRIBUTIONS BASED ON THEIR EXPERIENCE AND EXPERTISE AND WOULD KEEP ON MONITORING PUBLIC EXPENDITURE THROUGH THE FINANCE COMMITTEE, THE PUBLIC ACCOUNTS COMMITTEE AND OTHER FORUMS.

/EARLIER IN

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