XN000022-1992-10-16 — Page 15

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FRIDAY, OCTOBER 16, 1992

"

COMBINED WITH OUR NEW APPROACH IN RESOURCE ALLOCATION, THIS ENABLES THE GOVERNMENT TO TRANSLATE POLICY ASPIRATIONS INTO FIRM FINANCIAL COMMITMENTS IN A NUMBER OF KEY PROGRAMME AREAS FOR THE NEXT FOUR YEARS, WITHOUT BREACHING OUR PRUDENT EXPENDITURE GUIDELINES OR EATING INTO OUR FORECAST FISCAL RESERVES," HE EXPLAINED.

THE FINANCIAL SECRETARY MAINTAINED THAT ONE OF THE REASONS FOR THE GROWTH OF THE LOCAL ECONOMY AND IN REVENUE WAS ITS "STABLE, PREDICTABLE AND LOW-TAX SYSTEM."

REFERRING TO THE OCCASIONAL CRITICISMS ON HONG KONG'S OFFER "TAX BREAKS" TO BE FOUND ELSEWHERE, HE SAID: "THE THE MATTER IS THAT WE DO NOT NEED THEM.

ΤΟ

"A SIMPLE,

STRAIGHT-FORWARD

FAILURE FACT OF

SYSTEM, WITH FEW PERMITTED DEDUCTIONS, ALLOWS US TO KEEP EFFECTIVE TAX RATES LOW, AS WELL AS MINIMISING THE COST OF COLLECTION.

MR MACLEOD NOTED THAT THE INLAND REVENUE BOARD OF REVIEW PLAYED AN IMPORTANT ROLE IN ENSURING THAT THE TAX SYSTEM WAS RELIABLE, EFFICIENT AND FAIR. HE CONGRATULATED CHAIRMAN MR BILL TURNBULL ON THE SMALL NUMBER OF OUTSTANDING CASES.

HE ADDED THAT THE WORK OF THE BOARD WAS COMPLEMENTED BY THE GOVERNMENT'S ONGOING EFFORTS TO TACKLE TAX AVOIDANCE AND EVASION.

HE NOTED THAT THE STAMP DUTY (AMENDMENT) ORDINANCE HAD BEEN USEFUL IN CURBING SPECULATION IN DOMESTIC PROPERTY, BY MAKING STAMP DUTY PAYABLE ON EACH AND EVERY SALE AND PURCHASE AGREEMENT.

PAID

"WE SHALL CONTINUE TO LOOK AT NEW WAYS TO TACKLE TAX AVOIDANCE SO THAT, WHILE OUR TAX RATES REMAIN LOW, TAXES WHICH ARE DUE ARE IN FULL, HE ADDED.

་་

KAP SHUI MUN BRIDGE/MA WAN VIADUCT CONTRACT TO BE AWARDED

THE GOVERNMENT HAS DECIDED TO AWARD THE CONTRACT FOR DESIGN AND CONSTRUCTION OF THE KAP SHUI MUN BRIDGE AND MA WAN VIADUCT ON THE LANTAU FIXED CROSSING TO KUMAGAI-MAEDA-YOKOGAWA-HITACHI JOINT VENTURE, SUBJECT TO THE FINALISATION OF CONTRACT DETAILS.

THE CENTRAL TENDER BOARD (CTB) HAS TODAY ACCEPTED THE JOINT VENTURE'S FIXED PRICE LUMP SUM TENDER, WHICH WAS SUBMITTED IN A MIXTURE OF HONG KONG DOLLARS AND JAPANESE YEN, AND IS EQUIVALENT TO HK$1.64 BILLION IN MONEY OF THE DAY AT CURRENT EXCHANGE RATES.

THE CONTRACT WILL BE FORMALLY AWARDED NEXT MONTH WHEN CONTRACT DOCUMENTS HAVE BEEN COMPLETED. THIS WILL BE ONE MONTH SCHEDULE.

AHEAD

OF

/THE KAP