XN000022-1989-07-19 — Page 23

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WEDNESDAY, JULY 19, 1989

OF HIGHER INCOME TAX BURDEN OF

SHE SAID THAT UNDER THE BILL THE TAX BURDEN FAMILIES WOULD REMAIN THE SAME AS AT PRESENT, AND THE MIDDLE INCOME FAMILIES WOULD BE REDUCED,

ON THE LOWER

BUT THE TAX BURDEN

INCOME FAMILIES WOULD BE WOULD HEAVIER BECAUSE THE NEW BENEFITS WOULD FALL SHORT OF THOSE THAT BE LOST BY THE CANCELLATION OF THE WORKING WIFE ALLOWANCE.

TAX

REVENUE

TO

BE KONG WOULD

REVENUE DEPARTMENT

NUMBER

NET THE

HONG SIGNIFICANTLY BY THE ADDED COST THE INLAND INCUR IN HANDLING A MASSIVE INCREASE IN THE RETURNS TO BE PROCESSED, SHE SAID. IT WAS ESTIMATED OF RETURNS WOULD GO UP BY ABOUT 25 PER CENT.

REDUCED WOULD OF SALARIES TAX THAT THE NUMBER

"WOULD PEOPLE REALLY SUPPORT THE INTRODUCTION OF THIS THEY REALISED THAT ITS EFFECT WOULD BE TO INCREASE THE TAX THE MAJORITY OF FAMILIES AND ESPECIALLY ON THOSE WITH SHE ASKED.

MRS FONG

A VERY CONSERVATIVE

BILL IF BURDEN ON

LOWER INCOME?"

ESTIMATE

OF

THE WAS

THAT ADDED INCREASE IN RECURRENT STAFF COST TO THE INLAND REVENUE DEPARTMENT $11 MILLION A YEAR.

DEPARTMENT'S COMPUTER

THE ONE-OFF CAPITAL COST TO UPGRADE THE CAPACTIY WAS AT LEAST $28 MILLION.

IN ADDITION, THE BILL WOULD INCREASE THE SPACE DEPARTMENT.

·

NEEDS OF THE

THAT

THAT

"I CAN ONLY SYMPATHISE WITH OUR ADMINISTRATION. THEY KNOW THIS PIECE OF LEGISLATION WILL COMPLICATE THE TAX LAW; THEY KNOW

LEGISLATION IS THIS WILL CREATE MUCH MORE WORK FOR THEM AND THAT THE COMPLETELY NON-COST EFFECTIVE.

"THEY HAVE HAD TO COMPLY WITH THE INSTRUCTION GIVEN, ISSUE UP WITH THE BEST POSSIBLE LEGISLATION TO HANDLE GIVEN TO THEM BY QUR POLITICAL LEADERSHIP," SHE SAID.

THE

AND COME THAT WAS

NO INCREASE IN BURDEN ON LOW INCOME FAMILIES

DISMISSED

THE HON MIRIAM LAU TODAY (WEDNESDAY)

AS A

THAT "MISCONCEPTION" THE BELIEF

THE REMOVAL OF THE WORKING WIFE

ON ALLOWANCE WOULD RESULT IN A HEAVIER TAX BURDEN

SOME FAMILIES IN

THE LOWER INCOME GROUP.

OF THE THE

SHE WAS SPEAKING IN THE LEGISLATIVE COUNCIL IN SUPPORT

(NO.3) BILL 1989 WHICH INTRODUCED

INLAND REVENUE (AMENDMENT} SYSTEM OF SEPARATE TAXATION FOR MARRIED WOMEN.

/MRS LAU