XN000022-1988-04-20 — Page 3

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WEDNESDAY, APRIL 20, 1988

SHE WARNED THAT HONG KONG MIGHT BE HEADING BACK TOWARDS EXPENDITURE-LED BUDGETS FROM THE MUCH HEALTHIER REVENUE-LED BUDGETS,

MISS DUNN SAID SHE BELIEVED THAT THE FINANCIAL SECRETARY WAS KEEN TO INTRODUCE A NEW INDIRECT TAX NOT JUST TO BROADEN THE TAX BASE BUT ALSO TO INCREASE TOTAL REVENUE IN ORDER ΤΟ MEET DEMANDS FOR INCREASING SPENDING.

"BUT WHETHER WE CAN

AFFORD TO SPEND

MORE IS NOT JUST A QUESTION OF WHETHER WE HAVE, OR CAN RAISE, THE REVENUE OR RESOURCES TO PAY FOR IT, SHE SAID.

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"EVEN IF WE HAVE, WE MUST TAKE INTO ACCOUNT THE EFFECT ON THE ECONOMY IF SPENDING PRE-EMPTS A HIGHER PROPORTION OF THE ECONOMY'S RESOURCES.

M

TURNING TO TAX CONCESSIONS IN THE BUDGET, MISS DUNN SAID THAT ALTHOUGH THE FINANCIAL SECRETARY HAD PROPOSED SOME WIDENING OF THE TAX BANDS AND SOME REDUCTIONS IN THE RATES APPLIED WITHIN THEM,

HE HAD NOT DISTINGUISHED BETWEEN THE ADJUSTMENTS FOR INFLATION AND THE GENUINE REDUCTIONS.

"1 BELIEVE THAT OUR ENTITLEMENT TO ADJUSTMENTS FOR INFLATION SHOULD BE RECOGNISED AND THAT THEY SHOULD BE DEALT WITH SEPARATELY FROM ANY OTHER CHANGES TO THE PERSONAL TAXATION SYSTEM WHICH MAY BE CALLED FOR BY THE NEED TO INCREASE OR REDUCE TAXATION GENERALLY, SHE SAID.

"

AS A LONG-S'TANDING SUPPORTER OF THE PRINCIPLE OF SEPARATE TAXATION FOR MARRIED COUPLES, MISS DUNN SAID SHE FOUND IT INDEFENSIBLE THAT THE LAW SHOULD GIVE A SPECIAL TAX ADVANTAGE TO THE FAMILY IN WHICH THE WIFE RECEIVED A SALARY BUT NOT то THE FAMILY WHERE THE WIFE STAYED AT HOME TO WORK WITHOUT PAY.

"I

"HOUSEWIVES ARE WORKING WIVES, SHE SAID. THEY ARE NOT PAID A SALARY FOR THE WORK THEY DO, BUT WHAT THEY DO AT HOME IS AT LEAST AS VALUABLE TO THE COMMUNITY, SHE SAID.

"A TAX ALLOWANCE FOR A

PARTICULAR GROUP OF WORKING WIVES MERELY REPLACES ONE ANOMALY WITH ANOTHER AND PUTS THE FAMILY IN WHICH THE WIFE WORKS AT HOME AT A DISADVANTAGE."

"

MISS DUNN ALSO COMMENTED ON THE PRESENTATION OF THE BUDGET.

WHILE COMMENDING THE FINANCIAL SECRETARY AND THE ARMY OF "BACKROOM ROYS ANJ) GIRLS" FOR THEIR EFFORTS IN IMPROVING AND AMPLIFYING THE INFORMATION GIVEN TO THE PUBLIC IN THIS YEAR'S BUDGET DOCUMENTS, MISS DUNN SAID THAT MORE ATTENTION SHOULD BE PAID ΤΟ THE QUALITY OF INFORMATION.

SHE REPEATED HER CALL FOR THE APPOINTMENT OF A SINGLE EDITOR FOR ALL THE BUDGET DOCUMENTS. AN EDITOR SHOULD ALSO REMOVE AS MUCH JARGON AS POSSIBLE FROM THE BOOKLETS ON THE "ECONOMIC BACKGROUND" AND "PROSPECTS" SO AS TO ENCOURAGE MORE PEOPLE TO READ THEM.

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