XN000022-1987-03-18 — Page 24

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WEDNESDAY, MARCH 18, 1987

HOWEVER, HE SAID GREAT CARE WOULD BE REQUIRED IN DEFINING A +DAY OUT OF HONG KONG AS IT SHOULD NOT BE SO LITERALLY DEFINED AS TO REQUIRE RETURN AFTER MIDNIGHT.

LIKEWISE, A PARTICULARLY DEFT TOUCH WAS CALLED FOR IN DRAFTING THE PROPOSED ANTI-AVOIDANCE PROVISION TO COUNTERACT +MYER-INSPIRED+ TAX BASED FINANCING ARRANGEMENTS, HE SAID.

+LET US HOPE THAT THE DRAFTSMAN SELECTS A RIFLE RATHER THAN A BLUNDER-BUSS, AS THERE IS A GREAT DANGER THAT ANTI-AVOIDANCE PROVISIONS OF THIS TYPE CATCH MORE THAN THE MISCHIEF FOR WHICH THEY ARE INTENDED, HE ADDED.

MR CLYDESDALE THEN DREW MEMBERS' ATTENTION TO THE FACT THAT ONLY IN 1986-87 WOULD GOVERNMENT ENJOY THE FULL IMPACT OF REVENUES FROM 1986 BUSINESS PROFITS WHICH WERE GENERALLY WELL UP ON THE PREVIOUS YEAR.

HE HOPED, THEREFORE, THAT IN NEXT YEAR'S BUDGET, THE FINANCIAL SECRETARY WOULD SERIOUSLY RECONSIDER REMOVING THE 1.5 PER CENT PREMIUM RATE OF TAX ON CORPORATE PROFITS.

HE SAID THE DUTIES ON SOFT DRINKS AND COSMETICS SHOULD ALSO BE REMOVED, REGARDLESS OF THE FACT THAT AN EFFORT HAD HAD TO BE MADE TO PUT IN PLACE THE MACHINERY FOR COLLECTION.

+THERE IS NO NEED FOR DISCRIMINATORY LEVIES OF THIS NATURE IN THE PRESENT HEALTHY STATE OF GOVERNMENT FINANCES,+ HE SAID.

FINALLY, HE SUGGESTED THAT THE FINANCIAL SECRETARY SHOULD REDUCE THE AIRPORT TAX TO A LEVEL WHICH WOULD KEEP TRAVELLING BUSINESSMEN HAPPY AND TOURISTS RETURNING TO HONG KONG AGAIN AND AGAIN.

+$50 WOULD BE A GREAT DEAL MORE SENSIBLE THAN $120, + HE SAID.

TIME FOR ANOTHER REVIEW OF TAX POLICY *****

IT WAS NOW TIME FOR THE GOVERNMENT TO CONDUCT ANOTHER REVIEW OF TAX POLICY, THE HON LEE YU-TAI SAID TODAY (WEDNESDAY).

SPEAKING DURING THE RESUMED DEBATE ON THE APPROPRIATION BILL 1987, MR LEE SAID THAT A 10-YEAR REVIEW WAS TIMELY AS THE LAST SUCH STUDY WAS IN 1975.

/+A SUCCESSFUL