XN000022-1992-02-19 — Page 6

WEDNESDAY, FEBRUARY 19, 1992

FROM

ONCE AGAIN, THIS ASSUMPTION DOES NOT STAND UP TO CLOSE EXAMINATION. WE RECEIVE FIRST CLASS ADVICE ON A WIDE RANGE OF ISSUES THE INDEPENDENT JOINT LIAISON COMMITTEE ON TAXATION. AND THERE ARE MANY OTHER CHANNELS THROUGH WHICH INDIVIDUALS AND INTERESTED GROUPS, INCLUDING THOSE WITH GRASS-ROOTS SUPPORT, CAN AND DO PRESENT THEIR VIEWS TO THE GOVERNMENT, WHETHER ON MATTERS OF PRINCIPLE OR OF TECHNICAL DETAIL. THESE INCLUDE THE OMELCO PANEL ON FINANCE, TAXATION AND MONETARY AFFAIRS. THE FINANCE BRANCH, THE INLAND REVENUE DEPARTMENT AND I MYSELF REGULARLY RECEIVE WRITTEN REPRESENTATIONS HOLD FACE-TO-FACE MEETINGS WITH CONCERNED PARTIES ON ALL ASPECTS OF THE TAXATION SYSTEM, PARTICULARLY DURING THE BUDGET SEASON. INDEED, I WAS HANDED SOME TAX PROPOSALS AS I ENTERED THIS BUILDING TODAY. MR LI HIMSELF HAS REFERRED TO A NUMBER OF SPECIFIC PROPOSALS MADE BY MEMBERS OF THIS COUNCIL ON PREVIOUS OCCASIONS. THESE WERE SUBSEQUENTLY CONSIDERED BY THE ADMINISTRATION. AND OF COURSE I WILL BE LISTENING WITH GREAT INTEREST TO ANY SUGGESTIONS OR IDEAS THAT EMERGE IN THE COURSE OF THIS DEBATE.

AND

IN CONCLUSION, WE HAVE IN PLACE A TAXATION SYSTEM WHICH IS PERHAPS UNIQUE IN ITS ABILITY TO RAISE REVENUE, WHILE MAINTAINING A SIMPLE SYSTEM OF COLLECTION AND LOW LEVELS OF TAX, PARTICULARLY FOR THE LESS WELL-OFF. WE ARE IN NO SENSE COMPLACENT, AND WE WILL CONTINUE TO BRING FORWARD TO THIS COUNCIL MEASURES TO TACKLE PROBLEMS: AS THEY ARE IDENTIFIED. IN DOING SO, WE WILL ADHERE TO THE FOUR BASIC PRINCIPLES WHICH I OUTLINED AT THE BEGINNING OF MY SPEECH. UNDER THESE CIRCUMSTANCES, MR. DEPUTY PRESIDENT, I CANNOT SUPPORT THE MOTION EITHER IN THE FORM PROPOSED BY MR. LI OR IN THE AMENDED VERSION PROPOSED BY MR. FUNG, AND I AND MY OFFICIAL COLLEAGUES WILL VOTE AGAINST.

+

LEGCO VOTED AGAINST COMMITTEE TO REVIEW TAXATION SYSTEM

A MOTION WHICH URGED THE GOVERNMENT TO SET UP A COMMITTE TO CONDUCT A COMPREHENSIVE REVIEW OF THE TAXATION SYSTEM IN HONG KONG - WAS. DEFEATED IN THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY).

THE MOTION, MOVED BY THE HON FRED LI, WAS DEBATED BY 29 LEGISLATIVE COUNCILLORS FOR FIVE HOURS.

K.K. FUNG

AN AMENDED MOTION ON THE SUBJECT MOVED BY THE HON WAS ALSO DEFEATED.

THE FINANCIAL SECRETARY, THE HON HAMISH MACLEOD, BEHALF OF THE GOVERNMENT.

SPOKE ON

A TOTAL OF THREE BILLS WERE PASSED AT TODAY'S MEETING.

/THE MAGISTRATES