XN000022-1993-04-26 — Page 2

MONDAY, APRIL 26, 1993

1

GOVT REMAINS COMMITTED TO CERTAINTY AND GROWTH

THAT

THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, TODAY (MONDAY) SAID A SIMPLE, LOW AND PREDICTABLE TAX SYSTEM REMAINED THE GOVERNMENT'S BASIC PHILOSOPHY.

SPEAKING AT A LUNCHEON MEETING OF THE FRENCH BUSINESS ASSOCIATION, HE SAID THE LAST BUDGET HAD DEMONSTRATED UNAMBIGUOUSLY HONG KONG'S CONTINUED COMMITMENT ON THIS SCORE.

HE SAID HE HAD RESISTED CALLS FOR A COMPREHENSIVE REVIEW OF THE TAX SYSTEM BECAUSE HE CONSIDERED ANY SUCH REVIEW MIGHT CREATE A SENSE OF UNCERTAINTY IN THE MINDS OF THE BUSINESS COMMUNITY AND MIGHT THE WRONG SIGNAL TO OVERSEAS INVESTORS.

SEND

HE ADDED THAT HE HAD ALSO PUT ON THE BACKBURNER THE CONTROVERSIAL IDEA OF INTRODUCING A SALES TAX AND HAD REITERATED THE GOVERNMENT'S COMMITMENT TO THE LINKED EXCHANGE RATE SYSTEM.

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TO

"ALL. THIS HELPS TO BRING MORE CERTAINTY, AND IN THE RUN-UP 1997 EVERYONE UNDERSTANDABLY IS LOOKING FOR CERTAINTY. AS A GOVERNMENT, WE SHOULD SEEK TO DELIVER THAT CERTAINTY WHERE POSSIBLE, HE SAID.

"LET ME ASSURE YOU THAT WE REMAIN FULLY COMMITTED TO FOSTERING AN ENVIRONMENT THAT IS FRIENDLY TO BUSINESS AND PROSPERITY. IN A NUTSHELL, A COMMITMENT TO FREE ENTERPRISE, FREE MARKETS AND FREE TRADE," HE SAID.

AT THE SAME TIME, HE SAID, THE GOVERNMENT SHOULD CONTINUE TO DO WHAT I'T COULD TO KEEP PRICES IN CHECK, MAINTAIN ITS COMMITMENT TO PROTECT THOSE AFFECTED BY RISING PRICES, ESPECIALLY THE MOST VULNERABLE GROUPS, AND SEEK TO HELP THE "SANDWICH CLASS".

DEAL,

HE POINTED OUT THAT THIS YEAR'S BUDGET CONTRIBUTED A BOTH DIRECTLY AND INDIRECTLY, TOWARDS MAINTAINING A FAVOURABLE ENVIRONMENT FOR BUSINESS IN HONG KONG.

GREAT

WILL

"THE SUBSTANTIAL INVESTMENT IN OUR INFRASTRUCTURE IS A KEY CLEARLY HELP BUSINESS TO BE MORE EFFICIENT, HE SAID, CITING AS AN EXAMPLE THE MAJOR ROAD TRANSPORT IMPROVEMENTS.

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IT

"

"OTHER SECTORS ALSO STAND TO GAIN. THE STOCK MARKET BENEFITS FROM THE REDUCTION IN STAMP DUTY. THE TOURIST INDUSTRY HAS BEEN GIVEN A BOOST, NOT ONLY BY THE ABOLITION OF COSMETICS DUTY, BUT ALSO BY THE INCREASED ASSISTANCE FOR THE TOURIST ASSOCIATION, AND BY THE DECISION TO PROCEED WITH AN EXTENSION TO THE CONVENTION AND EXHIBITION CENTRE.

"I AM HOPEFUL ALSO THAT, AS A RESULT OF THE REVIEW OF THE TRADE DEVELOPMENT COUNCIL'S FINANCING ARRANGEMENTS, THERE WILL EMERGE SOME ADDITIONAL FUNDING SUPPORT FOR LOCAL INDUSTRY TO ENABLE MANUFACTURERS TO MOVE INTO HIGH-TECH PRODUCTION," HE SAID.

OUR

/THE FINANCIAL