XN000022-1987-03-19 — Page 9

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THURSDAY, MARCH 19, 1987

HE CAUTIONED THAT THE PROPOSAL TO CONSIDER GREATER RELIANCE ON INDIRECT TAXES SHOULD BE SENSITIVE TO THE INHERENT REGRESSIVE NATURE OF SUCH TAXES AND SHOULD BE ACCOMPANIED BY POSITIVE MEASURES TO ENSURE THAT THE BENEFITS FROM A BROADENED TAX BASE WOULD NOT BE BORNE BY THOSE WHO WERE THE LEAST WELL-OFF IN THE SOCIETY.

HE STRESSED THAT A BROADENING OF THE TAX BASE SHOULD NOT BE A PRETEXT FOR RAISING TOTAL GOVERNMENT REVENUES AND THE INTRODUCTION OF NEW TAXES WOULD ONLY BE ACCEPTABLE IF IT WAS ACCOMPANIED BY MEASURES TO REDUCE TAXES FROM OTHER REVENUE RESOURCES OR TO ELIMINATE VARIOUS OTHER LEVIES.

MR LEE SAID HE HAD THOUGHT VERY HARD TO THINK OF SOME NEW INDIRECT TAXES THAT COULD BE IMPOSED ON THE PUBLIC WHICH WERE EQUITABLE.

HE SUGGESTED THAT A TAX COULD BE CHARGED ON EXPENSIVE MEALS COSTING MORE THAN $100 PER HEAD. BUT ADMITTED THAT THIS MIGHT NOT BE EASY TO SUPERVISE.

TURNING TO THE NEED FOR CONSISTENCY ON THE APPLICATION OF SOUND POLICIES, MR LEE NOTED IT WAS WIDELY BELIEVED THAT THE ECONOMIC SUCCESS OF HONG KONG OWED MUCH TO THE CONTINUED ADOPTION OF SOUND POLICIES WITHIN A LIBERAL, OPEN AND MARKET-ORIENTED ECONOMIC SYSTEM,

HE POINTED OUT THAT A FUNCTIONAL MARKET SYSTEM COULD ONLY BE ACHIEVED THROUGH FREE COMPETITION AND NOT BY THE ENTRENCHMENT OF MONOPOLY INTERESTS OR THE PROVISION OF INCENTIVES TO PARTICULAR COMPANIES OR INDUSTRIES.

+PUBLIC INTEREST CAN ONLY BE DEFENDED AND THE PUBLIC'S FAITH IN THE GOVERNMENT CAN ONLY BE PRESERVED THROUGH CONSISTENCY IN ADHERING TO OUR SOUND ECONOMIC AND BUDGETARY POLICIES, HE SAID.

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CUMBERSOME APPLICATION PROCEDURE CRITICISED

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THE HON SELINA CHOW TODAY (THURSDAY) CRITICISED THE GOVERNMENT PROCEDURE FOR APPLYING FOR KINDERGARTEN FEE ASSISTANCE AS +CUMBERSOME AND BUREAUCRATIC+ DURING THE SECOND DAY OF THE BUDGET DEBATE.

NOTING THAT LESS THAN 25 PER CENT OF THE 40 000 ELIGIBLE KINDERGARTEN PUPILS ACTUALLY RECEIVED FEE ASSISTANCE, MRS CHOW SAID THE PROCEDURE LOOKED +MORE LIKE AN ATTEMPT TO DISCOURAGE APPLICATION THAN AN EFFORT TO BE HELPFUL+ AND CALLED FOR IMMEDIATE IMPROVEMENT.

/SHE POINTED