XN000022-1988-11-03 — Page 5

THURSDAY, NOVEMBER 3, 1988

POINTING

RATES OF OUT.

THAT

DIFFICULTIES

IN

HE SAID, ADMINISTRATIVE

"AND INCIDENTALLY, I HOLD THE VIEW THAT DIFFERENTIAL

BE AVOIDED, TAX SHOULD, IF POSSIBLE, BE

LEAD

CONSIDERABLE THESE WOULD CLASSIFYING GOODS.

TO

AT THIS YIELD FROM

DIFFICULT IT WOULD BE GIVEN THE NUMBER OF VARIABLES, STAGE TO MAKE A RELIABLE ESTIMATE OF THE LIKELY POTENTIAL A FUTURE "SALES TAX" IN HONG KONG.

ESTIMATING

"INDEED, THERE ARE A NUMBER OF DIFFERENT METHODS OF

IT ON THE VALUE OF THE POTENTIAL FUTURE TAX YIELD, SUCH AS BASING

IT FROM PRIVATE EXTRAPOLATING TOTAL WHOLESALE

HE SAID. CONSUMPTION EXPENDITURE IN THE GDP ESTIMATES,

TRANSACTIONS, OR

"

WHICH "THE PROS AND CONS OF

METHOD

TO

ARE ADOPT

CURRENTLY

BEING EXAMINED.

AND

FOR

FAIRLY A

+

TRANSACTIONS,

THAT EACH BILLION

"HOWEVER, BASING ON THE VALUE OF TOTAL WHOLESALE

ESTIMATE I AMBIT, BROAD PROVIDING PERCENTAGE POINT OF SALES TAX' LEVIED WOULD YIELD SOME $1.25 AT 1987-88 PRICES.

YIELD

"PURELY BY WAY OF EXAMPLE, YOU MAY WISH TO NOTE THAT THE

TOTAL TO THE APPROXIMATES

1988-89 OF THE 1988-89 CENT TAX, OR SOME 45 PER

FROM A FIVE PER CENT 'SALES TAX' ESTIMATE FOR SALARIES ESTIMATE FOR PROFITS TAX.

THREE TIMES THE BEVERAGES AND

"A ONE PER CENT SALES TAX ' WOULD YIELD OVER

FROM NON-ALCOHOLIC TOTAL 1988-89 ESTIMATE OF REVENUE COSMETICS."

SUGGESTING THINKING

THAT FIVE ABOUT. "I

MR JACOBS STRESSED THAT HE WAS NOT CENT OR ONE PER CENT WERE THE RATES HE WAS WANT YOU TO GET SOME IDEA OF THE FIGURES, HOWEVER BROAD BRUSH.

PER JUST

THAT THE INTRODUCTION

WE HAVE BUT

YET TO

"SO FAR, OUR RESEARCHES HAVE INDICATED HONG KONG

FEASIBLE. IS OF A 'SALES TAX' IN PERSUADE PEOPLE THAT IT IS DESIRABLE.

MADE THAT IT PUBLIC FOR

"I AGREE WITH VARIOUS STATEMENTS THAT HAVE BEEN IS TIME THAT WE SHOULD PUT MORE DETAILED PROPOSALS TO THE CONSIDERATION, HE SAID.

EL

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