XN000022-1989-04-27 — Page 3

THURSDAY, APRIL 27, 1989

STEPHEN CHEONG CALLS FOR BETTER DEAL FOR MIDDLE-INCOME GROUP

* * *

ANY FURTHER TAX BENEFITS ARISING FROM FUTURE

BUDGET SURPLUSES

SHOULD FIRST BE PASSED ON TO THE MIDDLE-INCOME GROUP, THE HON STEPHEN CHEONG SAID TODAY (THURSDAY).

HE PLEADED THAT CONSIDERATION AND BE ADOPTED IN FOR THE 1990-91 FINANCIAL YEAR.

BE GIVEN DUE SUGGESTION PARTICULAR THIS

FORMULATING THE BUDGETARY STRATEGY

THAT

FUTURE IN THE

APPROPRIATION BILL 1989 LEADING THE SECOND-DAY DEBATE ON THE

SUGGESTED

IN MR CHEONG LEGISLATIVE COUNCIL, IN THE BUDGETS, THERE SHOULD BE NO NEED TO CONSIDER ANY FURTHER CUTS STANDARD RATE OF TAXATION FOR INDIVIDUALS AS WELL AS CORPORATIONS.

EARNERS AS WELL AS HIGH INCOME "IN MY VIEW, BOTH OUR CORPORATIONS OUGHT TO BE CONTENT WITH THE LOW RATE OF TAXATION WE ENJOY," HE SAID.

BENEFITS HE SAID ANY FURTHER SHOULD GO TO THE MIDDLE-INCOME GROUP.

OUR

NOW

ARISING FROM

FUTURE SURPLUSES

AFTER ALL, MR CHEONG SAID, ONE PERCENTAGE POINT CUT IN TAX WOULD NOT MAKE OR BREAK INDIVIDUAL TAX PAYING CORPORATIONS.

PROFITS

PAYERS ABOUT

CENT PROFITS TAX, BUT IF THE OVERALL BENEFIT OF THAT ONE PER AMOUNTING TO $650 MILLION IN A FULL YEAR, WAS PASSED ON TO TAX

ΤΟ $100,000 FROM

$500,000, ANNUAL

RANGING WITH AN

INCOME 300,000 SUCH TAX PAYERS WOULD STAND TO BENEFITS, HE POINTED OUT.

CONCERN OVER THE SURGE OF MOST WORRYING

MR CHEONG ALSO EXPRESSED SERIOUS RECURRENT PUBLIC EXPENDITURE, SAYING THAT THIS WAS THE ASPECT OF THE BUDGET.

OUR

FEW

THE PAST

YEARS MAY NOT BE OF PERFORMANCE "ECONOMIC

COMPONENT AND IF

PUBLIC SECTOR RECURRENT REPEATED EASILY

FROM THE ECONOMY, WE CONTINUES TO DRAW BIGGER PORTION OF RESOURCES

IF AND WHEN THE

TURNS ECONOMY MAY FACE VERY UNPALATABLE PROBLEMS SOUR," HE SAID.

GIVE AN ASSURANCE OF HE HOPED THE FINANCIAL SECRETARY WOULD

MEDIUM FALLING BACK, WITHIN A PERIOD OF TWO TO THREE YEARS, ON TO THE

THE UPPER AS

LIMIT OF ANY FURTHER TERM TREND GROWTH RATE OF GDP GROWTH IN THE PUBLIC SECTOR EXPENDITURE.

A

SHOULD BE CHANCE OF

TURNING TO INFLATION, MR CHEONG SAID THAT HONG KONG PREPARED TO "HIT THIS MONSTER AT ITS HEAD" IF THERE WAS INFLATION RUNNING OUT OF CONTROL.

WRONG BELIEF

AMONG SOME

EASILY

BE

SOLVED BY

HE NOTED, HOWEVER, THAT THERE WAS A

THE

OF INFLATION COULD ILLS QUARTERS THAT REMOVING THE HONG KONG DOLLAR LINK WITH THE U.S. DOLLAR.

/"SUCH A