XN000022-1989-04-26 — Page 7

WEDNESDAY, APRIL 26, 1989

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DESIGN,

MANAGEMENT AND TECHNICAL

SHE SAID HIGH VALUE-ADDED OPERATIONS MUST BE PURSUED.

HAD

COMMENTING ON THE LEGAL INFRASTRUCTURE, MISS TAM CONGRATULATED THE FINANCIAL SECRETARY ON THE RECENT REGULATORY REFORMS HE INTRODUCED IN THE SECURITIES MARKET AND STOCK EXCHANGES.

"AND I WELCOME HIS PROPOSALS FOR AGAINST INSIDER TRADING.

"HONG KONG MUST ESTABLISH ITSELF SAFEGUARDING THE INTERESTS OF INTERNATIONAL AND CHINA SO THAT WE CAN CONTINUE ΤΟ BE CENTRE, MISS TAM SAID.

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INTRODUCING LEGISLATION

AS AN HONEST BROKER INVESTORS IN HONG KONG FAVOURED AS A FINANCIAL

TURNING TO THE BUDGET PROPOSALS, MISS TAM SAID THE "SANDWICH CLASS" BY WHICH SHE MEANT THOSE EARNING A FIXED INCOME AT A LEVEL ABOVE THAT FOR ENJOYING PUBLIC RENTAL OR HOME OWNERSHIP HOUSING, HAD VERY LITTLE TO GAIN IF AT ALL.

THE TAX CONCESSION DID NOT RESULT IN REDUCTION OF TAX BURDEN, SHE SAID.

WHILE THE STANDARD RATE OF 15.5 PER CENT WAS REDUCED TO 15 PER CENT, THE ACTUAL WAGES AND SALARY LEVEL HAD RISEN AT A HIGHER LEVEL.

"AS A RESULT THOSE WHO ARE ALREADY IN THE TAX NET ARE MOVING INTO A HIGHER MARGINAL RATE. MORE NEW COMERS BEING CAUGHT IN THE TAX NET."

THE 0.5 PER CENT REDUCTION WAS, IN THE LIGHT OF CIRCUMSTANCES, "TOO LOW", MISS TAM ADDED.

THE

THE 0.5 PER CENT REDUCTION OF PROFIT TAX TO 16.5 PER CENT, MISS TAM SAID, WAS NOT ESSENTIAL.

"ALTHOUGH THERE ARE CASES FOR A REDUCTION IN COMPANY PROFITS

TAX, THERE WAS REALLY NO STRONG PRESSURE TO DEMAND IT.

邮

IT SEEMS TO ME THE AMOUNT OF TAX FOREGONE UNDER THIS ITEM SHOULD HAVE BEEN ALLOCATED TO WELFARE AND MEDICAL SERVICES EXPENDITURE OR GIVEN AS TAX DEDUCTION ON EMPLOYERS' CONTRIBUTION TO PRODVIDENT FUNDS.'

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ON ESTATE DUTY, MISS TAM SUGGESTED LIFTING THE BASELINE ΤΟ $2.5 MILLION FROM $2 MILLION, WHICH WAS SET IN 1982, ΤΟ ALLEVIATE UNNECESSARY HARDSHIP TO THE LOWER MIDDLE INCOME FAMILIES.

SHE SAID: "THE RISING PROPERTY PRICE AND COMMERCIAL RENTAL IS GOING TO CAUSE SERIOUS INFLATION AS WE SEE THE COST OF SERVICES SUCH AS MEDICAL, LEGAL, ACCOUNTING AND ALL OTHER CONSUMER SERVICES RISING AS A RESULT OF RENTAL INCREASES.

GIVE

THEM

"THE MIDDLE INCOME SANDWICH CLASS IS CAUGHT IN THE SPIRALLING NIGHTMARE AND IT MUST BE THE FINANCIAL SECRETARY'S TASK TO MORE RELIEF, MISS TAM CONCLUDED.

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