XN000022-1992-05-06 — Page 3

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WEDNESDAY, MAY 6, 1992

FS SPEAKS AT RESUMED DEBATES ON BUDGET-RELATED BILLS

**

THE FINANCIAL SECRETARY, THE HON HAMISH (WEDNESDAY)

MACLEOD, SAID IN THE LEGISLATIVE COUNCIL HE DID NOT BELIEVE INCREASE

BLUNT OF 1% IN PROFITS TAX WOULD

HONG THE MODEST COMPETITIVENESS AS A BUSINESS AND FINANCIAL CENTRE.

TODAY

THAT

KONG'S

SPEAKING AT THE RESUMED DEBATE ON THE INLAND REVENUE BY (AMENDMENT) (NO. 3) BILL 1992, HE SAID THE NEW LEVEL WAS STILL LOW ANY INTERNATIONAL STANDARD AND, INDEED LOWER THAN IT HAD BEEN IN KONG IN SOME PREVIOUS YEARS.

HONG

"I AM PLEASED THAT THERE HAS BEEN SUPPORT FOR MY PROPOSAL FOR A 1% INCREASE IN PROFITS TAX PAYABLE BY CORPORATIONS. THIS INCREASE WILL YIELD A SIGNIFICANT AMOUNT IN REVENUE TERMS: $1.6 BILLION IN FULL YEAR," HE SAID.

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SAID HE LIKE TO SEE

TURNING TO CLAUSE 4 OF THE BILL, WHICH PROPOSES SIGNIFICANT

TAXATION INCREASES IN PERSONAL

ALLOWANCES, MR MACLEOD

WOULD OF THOSE MEMBERS WHO THE POSITION UNDERSTOOD INCREASES ON AN EVEN MORE GENEROUS SCALE.

"BUT I CAN ONLY EMPHASISE ONCE AGAIN THAT PERSONAL ALLOWANCES SINCE 1980 HAVE KEPT PACE WITH INFLATION, AND THAT IT IS OUR INTENTION TO ENSURE THAT THEY CONTINUE TO DO SO OVER TIME.

"IT

OF

OUR

VERY

RATE

ALSO WORTH REPEATING YET AGAIN THAT OVER HALF IS WORKING POPULATION NOW PAYS NO SALARIES TAX AT ALL; THAT ONLY A SMALL NUMBER INDEED PAY AT THE STANDARD RATE; AND THAT STANDARD IS ITSELF ONE OF THE LOWEST IN THE WORLD.

It

MR

"AS SAID, I HAVE GIVEN ASSURANCE ABOUT MY POSITIVE ATTITUDE TOWARDS INCREASING TAX ALLOWANCES AND TAX BANDS IN MY NEXT BUDGET, MACLEOD SAID.

THE COMPLEX AD HOC CHEN-YA,

ON THE DUTIABLE COMMODITIES (AMENDMENT) BILL 1992, HE SAID

SIMPLE BILL, ALTHOUGH

IN CONCEPT, INVOLVED A

OF NUMBER TECHNICAL POINTS ON WHICH THE GOVERNMENT'S EXCHANGES WITH AN GROUP

HUANG ON ALL THE BUDGET-RELATED BILLS CHAIRED BY DR WERE PARTICULARLY USEFUL.

SAID

SPEAKING AT THE COMMITTEE STAGE FOR THE BILL, MR MACLEOD THE BILL, IF ENACTED, WOULD EXEMPT FROM DUTY ON DIESEL FUEL FRANCHISED BUSES RUNNING ON ROUTES SPECIFIED UNDER

SERVICES THE PUBLIC BUS

ORDINANCE.

DUTY

**THIS WILL REPLACE THE PREVIOUS ARRANGEMENT UNDER WHICH FRANCHISED BUS COMPANIES RECEIVED A PARTIAL REFUND IN RESPECT OF PAID.

"THE

OF ADMINISTRATION CONSIDERED THE POSSIBILITY THE REFUND

BUT IT WILL BE EASIER ΤΟ TO 100%.

ADMINISTER MONITOR A SYSTEM OF SIMPLE EXEMPTION, HE SAID.

INCREASING

AND

TO

HOWEVER, HE POINTED OUT THAT A PRACTICAL DIFFICULTY, AROSE THE CASE OF THE NEW LANTAU BUS COMPANY.

IN

/"THIS COMPANY'S