XN000022-1989-04-26 — Page 10

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WEDNESDAY, APRIL 26, 1989

VOICES HAD LUCKILY BEEN BLOCKS ECONOMIC

MARKET, WHICH

SIGNED,

FOR THE TIME BEING, PROTECTIONIST CONTAINED BUT SHOULD THERE BE AN ECONOMIC DOWNTURN, LIKE THE EUROPEAN COMMON MARKET AND THE NORTH AMERICAN WAS CONSOLIDATED BY THE CANADIAN-AMERICAN TRADE PACT RECENTLY MIGHT RESORT TO PROTECTIONIST MEASURES, HE SAID.

"WE MUST REALISE THAT IN FUTURE, THERE IS THIS CLOUD HANGING

RIGHT OVER OUR ECONOMY AND THE FINANCIAL SECRETARY WAS

IN RESERVING SUBSTANTIAL FUNDS FOR OUR MAJOR

INFRASTRUCTURE,

EXPENDITURE

ON

HE

SAID.

HE AGREED WITH THE FINANCIAL SECRETARY THAT HONG KONG'S ACCUMULATED RESERVES WERE AT A COMFORTABLE BUT

EXCESSIVE LEVEL, CONSIDERING THE VARIOUS MAJOR PROJECTS, COMMITMENTS AND ANNUAL EXPENDITURE.

BE WORTHWHILE TO TURNING TO SALES TAX, MR POON SAID IT WOULD HAVE RESEARCH CARRIED OUT AND CONSULTATION CONDUCTED ON THE TECHNICAL ASPECTS OF INTRODUCING A SALES TAX.

"HOWEVER, IT WOULD BE UNDESIRABLE TO INTRODUCE IT WITHOUT THE MOST CAREFUL CONSIDERATION OF ITS IMPACT ON THE PEOPLE OF HONG KONG,

NOT ADVISABLE AND CERTAINLY

WHEN THERE

HIGH IS

INFLATION AND

SUBSTANTIAL ANNUAL SURPLUS," HE SAID.

HE ADDED THAT THE REDUCTION IN THE STANDARD TAX RATE OF HALF A PERCENTAGE POINT WAS WELCOME.

BUT HE WOULD HAVE LIKED TO SEE A MORE GENEROUS INCREASE IN

OF PERSONAL ALLOWANCES, A FURTHER WIDENING

THE TAX BANDS AND THE ABOLITION OF THE CLAWBACK PROVISION WHICH, HE SAID, STARTED TO BITE AT INCOME AS LOW AS JUST UNDER $4,000 A MONTH FOR A SINGLE PERSON.

MR POON WELCOMED THE FINANCIAL SECRETARY'S CONFIRMATION THAT

SEPARATE PLANS FOR THE INTRODUCTION OF

TAXATION FOR MARRIED WOMEN WERE WELL IN PROGRESS AND THAT THE GOVERNMENT INTENDED TO IMPLEMENT IT IN 1990.

INCREASE INITIAL CAPITAL

MR POON ALSO SUPPORTED PROPOSALS TO ALLOWANCE AND TO TOTALLY ABOLISH INTEREST TAX.

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