XN000022-1992-03-05 — Page 5

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THURSDAY, MARCH 5, 1992

QUESTION:

I WOULD LIKE TO ASK MY QUESTION IN CHINESE. I AM FROM TVB. NOW IN YOUR BUDGET SPEECH YOU SAID THAT YOU WOULD TRY TO COMBAT THE EVASION OF TAXES AND YOU MENTIONED THE DELIBERATE LOWERING OF CAR-IMPORT PRICES AS WELL AS IMPORT-TAX. YOU ELABORATE ON THAT?

FINANCIAL SECRETARY:

L

CAN

YES. I MEAN BASICALLY WHAT SEEMS TO HAVE BEEN HAPPENING IS AS YOU KNOW THERE IS A FIRST- REGISTRATION TAX, IT IS RELATED TO THE DECLARED VALUE OF THE CAR AND OF COURSE IF YOU, THROUGH ONE MEANS OR ANOTHER, CAN LOWER THE DECLARED VALUE OF THE CAR THEN YOU PAY LESS TAX. I DON'T THINK IT IS MUCH MORE COMPLICATED THAN THAT. I MEAN HOW THEY ACTUALLY DO IT CAN BECOME VERY COMPLICATED BUT I THINK THAT IS THE PROBLEM. WE'VE IDENTIFIED THE PROBLEM, WE'VE BEEN LOOKING VERY HARD AT HOW TO DEAL WITH IT - IT IS NOT ACTUALLY A VERY SIMPLE MATTER WE NOW ARE PRETTY SURE THAT WE

CAN DEAL WITH IT AND WE WILL BE BRINGING LEGISLATION FORWARD AS QUICKLY AS WE CAN BECAUSE AS I SAID IN THE SPEECH, THIS IS NOT A SMALL THING, I MEAN THIS IS COSTING US HUNDREDS-OF-MILLIONS-OF-DOLLARS.

QUESTION:

NOW MR LU PENG SAID THAT KONG SHOULD LIVE WITHIN ITS MEANS, BUT HE SAID THAT WE ARE NOW LIVING WITHIN OUR MEANS. DO YOU AGREE WITH HIM?

HONG

NOT

OUR

FINANCIAL SECRETARY:

IT'S A GOOD TRY! PHILOSOPHY AND OUR STRATEGY IS WELL SET OUT IN THE BUDGET SPEECH, AND I THINK ACTUALLY EXTREMELY CLEARLY SET OUT, AND I WOULDN'T WISH то COMMENT ON ANY OTHER VERSIONS.

QUESTION:

MR MACLEOD, WITH REGARD TO THE FIRST-REGISTRATION TAX, YOU SAID YOU' ARE GOING то INTRODUCE LEGISLATION. WHAT TYPE OF LEGISLATION ARE YOU LOOKING AT AND HOW SOON ARE YOU GOING TO INTRODUCE IT? I MEAN BECAUSE IT IS COSTING YOU MONEY IN THE MEANTIME.

FINANCIAL SECRETARY:

WELL IT IS SIMPLY LEGISLATION

ΤΟ DEAL WITH THIS LOOPHOLE. I DON'T KNOW THAT I CAN SAY MUCH MORE THAT WILL HELP YOU A FEW MONTHS.

QUESTION:

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OKAY, CAN 1 JUST ASK ONE MORE QUESTION. WITH REGARD TO ENVIRONMENTALISTS AND OIL COMPANIES ARE DISAPPOINTED THAT YOU DIDN'T FURTHER WIDEN THE GAP BETWEEN LEADED AND UNLEADED PETROL TO TRY AND ENCOURAGE, FOR THE HONG KONG ENVIRONMENT, TAXI- DRIVERS AND CAR-DRIVERS TO CONVERT TO UNLEADED PETROL. CAN I ASK YOU ABOUT THIS, I MEAN WHAT IS YOUR COMMENT ON THAT?

FINANCIAL

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SECRETARY:

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I THINK IT'S POR THE SECRETARY CONCERNED IN THAT CASE, PLANNING, ENVIRONMENT AND LANDS, I GUESS ALTHOUGH I THINK THERE ARE PROBABLY ANOTHER TWO SECRETARIES WHO ALSO HAVE AN INTEREST TO DECIDE WHETHER THEY WANT TO GO DOWN THAT ROAD. IF THEY DO, THEN OF COURSE IT DOESN'T HAVE TO WAIT FOR THE BUDGET, ACTUALLY, IT CAN

CAN BE INTRODUCED AT SOME APPROPRIATE TIME. BUT IT DIDN'T COME UP TO US AS AN APPROPRIATE BUDGET MEASURE, IT WOULD BE FOR ENTIRELY OTHER REASONS, NOT REVENUE REASONS.

/QUESTION