XN000022-1989-07-19 — Page 24

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WEDNESDAY, JULY 19, 1989

THESE THE

MRS LAU MAINTAINED THAT UNDER SEPARATE TAXATION,

OF INTRODUCTION FAMILIES WOULD NOT BE WORSE OFF THAN BEFORE THE WORKING WIFE ALLOWANCE.

"IN FACT, THEY WOULD STILL BE BETTER OFF, SHE SAID.

MRS LAU SAID SHE WOULD REMIND THOSE SPEAKING AGAINST THE BILL THAT THE WORKING WIFE ALLOWANCE WAS INTRODUCED AS AN INTERIM MEASURE

AFFAIRS, TO AMELIORATE AN EXISTING INEQUITABLE STATE OF

THE IMPLEMENTATION OF SEPARATE TAXATION.

PENDING

"ONCE THAT INEQUITY IS REMOVED, THE ALLOWANCE CANNOT JUSTIFY ITS CONTINUANCE, SHE SAID.

IT WAS NEVER INTENDED TO BE A SUBSTITUTE FOR SEPARATE TAXATION, NOR WAS IT INTENDED TO PROVIDE. RELIEF TO LOWER INCOME FAMILIES, SHE ADDED.

THE

THAT THIS

LEVEL OF

MRS LAU SAID SHE SUPPORTED THE GRANTING OF RELIEF TO LOWER INCOME FAMILIES BUT FELT

SHOULD MORE APPROPRIATELY BE SOUGHT BY INCREASING

PERSONAL ALLOWANCES OR BY INTRODUCING OTHER ALLOWANCES.

ON THE ARGUMENT THAT THE WORKING WIFE ALLOWANCE HAD ADEQUATELY ADDRESSED OR REDRESSED THE PROBLEM OF INEQUITY, MRS LAU SAID THAT REVENUE FIGURES SPOKE FOR THEMSELVES.

THE

UNDER THE SCHEME FOR THE WORKING WIFE ALLOWANCE, THE FULL-YEAR COST TO THE REVENUE WAS IN THE REGION OF $355 MILLION. IF SEPARATE TAXATION WERE IMPLEMENTED, THE FULL-YEAR COST TO THE REVENUE WOULD IN THE REGION OF $585 MILLION.

BE

"THIS MEANS THAT WITHOUT SEPARATE TAXATION, MARRIED COUPLES IN HONG KONG ARE ACTUALLY PAYING $230 MILLION IN EXCESS OF WHAT THEY WOULD OTHERWISE HAVE TO PAY," SHE SAID.

+

MRS LAU DESCRIBED SEPARATE TAXATION AS "AN END THAT THE MEANS".

JUSTIFIES

"THE VERY INQUITY OF MAKING MARRIED COUPLES PAY MORE THEY WOULD OTHERWISE HAVE TO IF THEY WERE UNMARRIED IS, IN SUFFICIENT JUSTIFICATION FOR INTRODUCING MEASURES AT ALL REMOVE THAT INEQUITY, SHE SAID.

Fu

SHE MAINTAINED THAT THE TAX SYSTEM MUST IMPORTANTLY, IT MUST BE FAIR AND EQUITABLE.

BE

SHE ALSO BELIEVED THAT THE SYSTEM SHOULD BETWEEN THE SEXES AND ALLOW WIVES TO MAINTAIN THEIR PRIVACY.

"IT WOULD NOT BE RIGHT ΤΟ COMPROMISE OUR BECAUSE THERE MAY BE TECHNICAL DIFFICULTIES, OR JUST BE SOMEWHAT EXPENSIVE TO DO SO, SHE ARGUED.

TAX

MY

THAN VIEW, COSTS TO

SIMPLE BUT, MORE

PROMOTE EQUALITY AND INDEPENDENCE

PRINCIPLES JUST IT' MAY BECAUSE

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