XN000022-1988-04-21 — Page 15

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THURSDAY, APRIL 21, 1988

MRS FAN SAID THE WHOLE EPISODE WAS SO DIFFERENT FROM THE USUAL EFFICIENCY OF THE ADMINISTRATION THAT SHE COULD NOT HELP WONDERING IF SUCH DELAY AND LACK OF RESPONSE MIGHT BE ASSOCIATED WITH THE PERSONAL CONVICTION OF CERTAIN OFFICERS.

"IN CONTRAST TO SEPARATE TAXATION, THE HIGHLY COMPLEX AND SENSITIVE SUBJECT OF WIDENING THE INDIRECT TAX NET IS PROCEEDING WITH FANTASTIC SPEED, SHE SAID.

"I

"WHILE THE FINANCIAL SECRETARY HAD STRESSED BOTH INSIDE AND OUTSIDE THIS COUNCIL THAT MANY FACTORS REMAINED TO BE CONSIDERED AND HE WANTED COMMUNITY SUPPORT FOR THIS MEASURE, WITHIN ONE MONTH OF RIS SPEECH, A SENIOR OFFICER OF THE FINANCE BRANCH INDICATED TO THE PRESS THAT $5 BILLION IS EXPECTED FROM WHOLESALE TAX AND SERVICE TAX AND THAT IMPLEMENTATION CAN BE AS EARLY AS NEXT APRIL.

AHEAD

"THE ENTHUSIASM AND DETERMINATION SHOWN BY OFFICIALS ΤΟ PUSH ON WIDE BASED INDIRECT TAX, WHEN THERE ARE CONSIDERABLE RESERVATIONS IN THE COMMUNITY, MUST NOT BE ALLOWED TO RESULT IN RUSHING SUCH MEASURES THROUGH AN UNWILLING PUBLIC.'

1+

SHE REQUESTED THE FINANCIAL SECRETARY TO EXERCISE FAIRNESS AND OBJECTIVITY IN DEALING WITH SEPARATE TAXATION AND INDIRECT

TAX, REGARDLESS OF THE PERSONAL PREFERENCES OF HIS ADVISERS.

MRS FAN SAID ONE ARGUMENT AGAINST THE INTRODUCTION OF SEPARATE TAXATION WAS THAT SOME TAXPAYERS ACTUALLY HAD TO PAY MORE. BUT THIS COULD BE REMOVED SIMPLY BY GIVING TAXPAYERS THE OPTION TAXATION.

OF INDIVIDUAL

"A NUMBER OF COUNTRIES INCLUDING THE UNITED STATES, UK, SINGAPORE, MALAYSIA, PHILIPPINES AND GERMANY PRACTICE THIS APPROACH.

"I BELIEVE SEPARATE TAXATION NEED NOT BE MANDATORY FOR EVERY ONE, COUPLES SHOULD HAVE THE CHOICE, AND THE BENEFIT SHOULD BE TO THE TAXPAYERS.

H

ON EXPENDITURE, SHE SAID THE FOUR PER CENT GROWTH IN THE SIZE OF THE CIVIL SERVICE FOR 1988-89 IN TERMS OF HEAD COUNT MEANT OVER 7,000 ADDITIONAL STAFF AND THIS INCREASE, EVEN THOUGH WARRANTED, COULD NOT BE TAKEN LIGHTLY, NOR SHOULD IT BE ALLOWED AS A CONTINUED TREND.

OF

"I FULLY AGREE WITH THE FINANCIAL SECRETARY ON DETERMINING PRIORITIES AND ENSURING EFFECTIVE

RESOURCES.

**CONSTANT VIGILANCE AND TIMELY REVIEW WILL EXERCISED OVER ALL SECTORS OF THE CIVIL SERVICE SO MANPOWER IS NOT DEVOTED TO FUNCTIONS THAT HAVE BREN TRADITION BUT MAY NO LONGER BE NECESSARY DUE CIRCUMSTANCES.

THE IMPORTANCE

DEPLOYMENT OF

BE

NEED TO THAT VALUABLE PERFORMED AS A TO CHANGING

"I LOOK