XN000022-1988-04-20 — Page 32

WEDNESDAY, APRIL 20, 1988

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"THE GREATEST CONTRIBUTION TO THE MAINTENANCE OF AN EXPANDING ECONOMY IS A SIMPLE AND LOW BASE TAXATION SYSTEM. THAT HAS BEEN A MAJOR STRENGTH FOR HONG KONG AND IT SHOULD ONLY BE ALTERED ΤΟ AN EXTENT ABSOLUTELY NECESSARY, HE COMMENTED.

-

MR CLYDESDALE ALSO SAID THAT IT WAS LIKELY THAT THERE MIGHT WELL BE A REPEAT PERFORMANCE AS REGARDS GOVERNMENT'S SURPLUS AND THIS LED HIM TO SUGGEST THAT, BESIDES THE ONE AND A HALF PER CENT PREMIUM RATE OF TAX ON CORPORATE PROFITS, THE DUTIES ON SOFT DRINKS AND COSMETICS SHOULD BE REMOVED.

M

"THERE IS REALLY NO NEED FOR DISCRIMINATORY LEVIES OF THIS NATURE GIVEN THE PRESENT HEALTHY STATE OF GOVERNMENT FINANCES, HE NOTED.

TAX CUTS TO PROMOTE BUSINESS COMPETITIVENESS URGED

CUT TAXES то PROMOTE ADD ON UNNECESSARY COUNCIL

THE GOVERNMENT SHOULD LOOK FOR WAYS TO BUSINESS COMPETITIVENESS AND GROWTH, RATHER THAN IRRESPONSIBLE TAXES, THE HON DAVID LI SAID IN THE LEGISLATIVE

TODAY (WEDNESDAY).

DESCRIBED THE FINANCIAL INTRODUCING A SALES TAX

SPEAKING IN THE BUDGET DEBATE, MR LI

INCLINATION TOWARDS

SECRETARY'S

"BUREAUCRATIC IDEOLOGY RUN WILD".

AS

HAD MORE HE SAID THAT SINCE 1982 PER CAPITA INDIRECT TAXATION

TOTAL TAX REVENUE COMING FROM THAN DOUBLED, AND THE PROPORTION OF

ΤΟ A THIRD THAN INDIRECT

MORE

TAXES

40 PER CENT.

HAD ALREADY INCREASED

BY

WOULD PROVIDE A STABLE IT WAS NOT CLEAR THAT INDIRECT TAXES

A SALES REVENUE BASE. WHAT WAS OBVIOUS, THOUGH, WAS THAT THE COST OF TAX WOULD BE ENORMOUS.

"EVEN IF A SALES TAX WERE LEVIED AT THE NON-RETAIL GOVERNMENT WOULD HAVE TO ESTABLISH A WHOLE NEW BUREAUCRACY,

I

LEVEL, THE

HE SAID.

TAX WERE APPLIED TO A WIDE RANGE OF "IN FACT, IF SUCH A

SERVANTS WOULD PRODUCTS, INCLUDING NECESSITIES, A HORDE OF NEW CIVIL HAVE TO BE HIRED TO ASSESS, COLLECT AND POLICE IT.'

P

DEVASTATE THE TOURIST ALSO, SUCH A TAX WOULD FUEL INFLATION,

MILLIONS JUST INDUSTRY, FORCE MANUFACTURERS AND WHOLESALERS TO SPEND TO HANDLE THE ACCOUNTING FOR THE LEVY, AND EXACERBATE THE SHORTAGE SKILLED LABOUR," HE SAID.

OF

MR LI