XN000022-1990-06-27 — Page 44

WEDNESDAY, JUNE 27, 1990

42

A

TURNING TO INDIRECT TAXATION, MR MACLEOD POINTED OUT THAT PROBLEM WAS THAT HONG KONG HAD LESS OPTIONS OPEN TO IT THAN IT WOULD WISH BECAUSE OF ITS SIMPLE TAX SYSTEM.

**TRADITIONALLY

WE HAVE RELIED TO A GREAT EXTENT ON THE GENERAL PROPERTY RATE AND PROPERTY TAXES, STAMP DUTIES AND CUSTOMS AND EXCISE DUTIES," HE SAID.

"IT IS ARGUABLE THAT THE CONTRIBUTION TO REVENUE FROM DUTIES WOULD NOT HAVE BEEN SO GREAT HAD THERE NOT BEEN A SIGNIFICANT ELEMENT OF CONTROL OF MOTOR VEHICLES, GIVING RISE TO LARGE REVENUES FROM DUTIES ON HYDROCARBON OILS AND VEHICLE FIRST REGISTRATION TAX.

+

"IT IS NOW WIDELY ACCEPTED THAT THERE IS NOW A STRONG FOR BROADENING THE BASE OF INDIRECT TAXATION. IT IS WHEN WE COME DISCUSS HOW BEST TO DO THIS THAT DIFFICULTIES ARISE.

"

CASE

то

"WHILE THE NEED TO PROTECT THE LESS WELL OFF IS SOMETHING CLEARLY RECOGNISE, WITHOUT SOME BROADENING OF THE INDIRECT TAX FORESEE THERE MAY BE DIFFICULTY IN MEETING INCREASING DEMANDS ON PUBLIC SECTOR FOR NEW SERVICES.

WE

THE

"WE ARE CONTINUING TO EXAMINE THE OPTIONS AVAILABLE TO US то INCREASE STABLE SOURCES OF REVENUE WITHIN THE BOUNDS OF WHAT CAN BE DONE WITHOUT FUELLING INFLATION OR MAKING THE LESS-WELL-OFF WORSE OFF," HE SAID.

INDUSTRIES MORE INCLINED TO USE SOPHISTICATED TECHNOLOGY

* *

WITH THE

OF SUPPORT

INDUSTRIES ARE NOW MORE

GOVERNMENT,

THE LOCAL MANUFACTURING

то INCLINED

MAKE USE OF SOPHISTICATED HIGH VALUE-ADDED PRODUCTS TECHNOLOGY TO PRODUCE HIGH-QUALITY, ORDER TO SHARPEN ITS COMPETITIVE EDGE IN EXPORT MARKETS.

IN

SAID THIS

CENTRE

THE SECRETARY FOR TRADE AND INDUSTRY, MR JOHN CHAN, TODAY (WEDNESDAY) AT THE OPENING OF A MULTI-PURPOSE INDUSTRIAL IN SHA TIN.

INDUSTRIAL

EXAMPLE,

INDUSTRIAL

MR

AS AN CENTRE CITING THE INFORMTECH CHAN SAID THE PROJECT HAD BENEFITTED FROM THE GOVERNMENT'S SUPPORT SERVICES THROUGH THE HONG KONG PRODUCTIVITY COUNCIL.

THE LEVEL FROM

HE SAID THE COUNCIL HELPED MANUFACTURERS TO UPGRADE

RANGE OF SERVICES OF THEIR PRODUCTION PROCESSES BY OFFERING A MANPOWER TRAINING TO TECHNICAL CONSULTANCY SERVICES.

"

INFORMTECH

HAS NOT

PRODUCTIVITY COUNCIL'S

USE ONLY MADE

SERVICES CONSULTANCY PRODUCTION LINE, BUT HAS ALSO, ON THAT COUNCIL'S

THE OF

HONG KONG ΤΟ AUTOMATE ITS ADVICE, ESTABLISHED

AND

A PRODUCT PLANNING DIVISION TO ANALYSE THE DEMANDS OF ITS MARKETS ITS OWN PRODUCTION CAPABILITIES.

/"I UNDERSTAND