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WEDNESDAY, MARCH 18, 1987
ON FUNDS FOR SCHOOL SOCIAL WORK SERVICE, MR LEE WONDERED WHY NO FINANCIAL SUPPORT WAS GIVEN TO IMPLEMENT THE 1 TO 3 000 RATIO ALREADY AGREED BY THE AUTHORITIES.
HE SAID THAT CONSIDERATION SHOULD BE GIVEN AT THE SAME TIME
TO IMPROVE FURTHER THE RATIO OF 1 TO 2 000.
LASTLY, HE CALLED ON THE GOVERNMENT TO KEEP AN EYE ON COMMERCIAL CRIMES AND TAKE EARLY MEASURES TO PREVENT THEM.
PROPOSAL TO SPREAD TAX BURDEN CRITICISED *****
THE HON DAVID K P LI TODAY (WEDNESDAY) CRITICISED THE FINANCIAL SECRETARY'S SUGGESTION TO SPREAD THE TAX BURDEN MORE WIDELY ACROSS THE COMMUNITY.
SPEAKING DURING THE FIRST DAY'S DEBATE ON THE 1987 APPROPRIATION BILL, MR LI SAID IT WOULD BE GROSSLY INEQUITABLE FOR THE GOVERNMENT TO SHIFT MORE OF THE TAX BURDEN ONTO THOSE LESS ABLE TO BEAR IT, PARTICULARLY BY IMPOSITION OF MORE INDIRECT TAXES.
HE POINTED OUT THAT INDIRECT TAXES HAD TWO MAJOR SHORTCOMINGS APART FROM THE HIGH ADMINISTRATIVE COST ASSOCIATED WITH THEM.
FIRSTLY, THEY WOULD DISTORT RELATIVE PRICES, RESULTING IN A MISALLOCATION OF RESOURCES AND AFFECTING HONG KONG'S POSITION AS A LOW-TAX CENTRE, HE SAID, CITING THE AIRPORT DEPARTURE TAX AS A CASE IN POINT.
ACCORDING TO MR LI, THE GRAVEST DEFECT OF INDIRECT TAXES WAS THAT THEY WERE REGRESSIVE, PARTICULARLY IF NECESSITIES WERE TAXED.
+ INDIRECT TAXES ON NECESSITIES WOULD INCREASE THE TAX BURDEN ON OUR LOWER INCOME GROUPS AND HAVE A DISTINCTIVE EFFECT ON OUR WORKFORCE,+ HE SAID.
HE SUGGESTED THAT THE IDEA OF MORE INDIRECT TAXES SHOULD BE DISMISSED.
MR LI PRAISED THE FINANCIAL SECRETARY'S DECISION TO REDUCE THE STANDARD RATE OF TAX AND TO INCREASE THE PERSONAL AND CHILD ALLOWANCES, BUT HE DISAGREED WITH HIS REFUSAL TO CONSIDER SEPARATE TAXATION FOR MARRIED WOMEN, SAYING THE GOVERNMENT SHOULD BE FAIR TO MIDDLE-INCOME WORKING COUPLES.
/HE WELCOMED
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