XN000022-1992-03-07 — Page 2

SATURDAY, MARCH 7, 1992

TAX ALLOWANCES DO COVER INFLATION

A GOVERNMENT SPOKESMAN SAID TODAY (SATURDAY) THAT THE INCREASES IN SALARIES TAX ALLOWANCE PROPOSED IN THE FINANCIAL SECRETARY'S BUDGET ON WEDNESDAY COVERED INFLATION.

"BOTH THE BASIC AND MARRIED PERSON'S ALLOWANCES ARE TO GO UP BY OVER 12%. ALLOWANCES FOR CHILDREN, DEPENDENT PARENTS AND SINGLE PARENTS ARE TO RISE BY UP TO 15%. THIS COMPARES WITH CURRENT INFLATION, WHICH IN 1991 WAS 12%, AND IS NOW SOMEWHAT LOWER, THE SPOKESMAN SAID.

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REFERRING ΤΟ A RECENT MEDIA REPORT WHICH QUESTIONED WHETHER ALLOWANCES HAD MAINTAINED THEIR REAL VALUE OVER TIME, THE SPOKESMAN SAID THAT OVER THE PERIOD 1986-87 TO 1992-93, INCREASES IN PERSONAL ALLOWANCES AND SUCCESSIVE REVISIONS OF THE TAX-BANDING SYSTEM HAVE MEANT THAT ALL TAX-PAYERS, OTHER OF COURSE THAN THOSE PAYING AT THE STANDARD RATE, HAVE BEEN MORE THAN COVERED FOR INFLATION, HE SAID.

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"AND IT IS IMPORTANT TO REMEMBER THAT AS MANY AS HALF HONG KONG'S WORKFORCE PAY NO SALARIES TAX AT ALL, THE SPOKESMAN ADDED.

RESPONDING ΤΟ THE SUGGESTION THAT A SHORTER PERIOD OF COMPARISON APPEARED TO SHOW THAT INCREASES IN ALLOWANCES HAD BEEN OVERTAKEN BY INFLATION, THE SPOKESMAN COMMENTED THAT A MEANINGFUL COMPARISON MUST COVER A REASONABLE NUMBER OF YEARS.

TAKING THE PERIOD FROM 1980 TO THE PRESENT, FOR EXAMPLE, PERSONAL ALLOWANCES AND INFLATION HAVE BOTH INCREASED BY APPROXIMATELY 210%.

THIS CLEARLY DEMONSTRATES THE GOVERNMENT HAS MAINTAINED THE VALUE OF PERSONAL ALLOWANCES OVER TIME," THE SPOKESMAN SAID.

WORKING GROUP TO STUDY DISCRIMINATION AGAINST WOMEN

WORKING GROUP

THE GOVERNMENT HAS SET UP AN INTER-DEPARTMENTAL TO LOOK INTO THE PROBLEM OF DISCRIMINATION AGAINST WOMEN IN THE EMPLOYMENT FIELD.

A GOVERNMENT SPOKESMAN SAID TODAY (SATURDAY) THE WORKING GROUP WOULD ASCERTAIN THE EXTENT TO WHICH DISCRIMINATION AGAINST WOMEN IN EMPLOYMENT MATTERS IS A PROBLEM IN HONG KONG, AND TO- CONSIDER WHAT GOVERNMENT MEASURES, IF ANY, SHOULD BE TAKEN TO TACKLE IT.

/THE WORKING