XN000022-1994-03-30 — Page 42

WEDNESDAY, MARCH 30, 1994

LEVEL, FOCUSED

ESPECIALLY

"COMPOUND GROWTH OF THIS INFRASTRUCTURE AND THE SOCIAL SERVICES, HAS ENABLED US TO EXPAND SERVICES AT A DRAMATIC PACE."

++

ON

OUR

HE SAID THIS WAS THE ANSWER TO THOSE WHO PRODUCED YET AGAIN THE RATHER TIRED ARGUMENT THAT TAX CONCESSIONS DID NOT HELP THE LESS WELL- OFF.

—

IN MOST "OF COURSE THEY DON'T, BECAUSE IN HONG KONG, UNLIKE OTHER PLACES IN THE WORLD, THE LESS WELL-OFF ARE VIRTUALLY TAX-FREE

OUR EXPENDITURE ON WE HELP

NOT THROUGH TAX CUTS BUT THROUGH THEM PUBLIC HOUSING AND THE SOCIAL SERVICES.

'AND INCIDENTALLY THAT IS ALSO PART OF THE ANSWER TO THE ANNUAL INCOME REFERENCES TO THE GINI COEFFICIENT AND OTHER SUCH MEASURES OF DISTRIBUTION THEY DON'T TAKE INTO ACCOUNT THE BENEFITS DERIVED

THEY SENSE GOVERNMENT EXPENDITURE AND SUBSIDIES, AND IN THAT MISLEADING.

H

-

FROM

ARE

THIS WILL

PROUD OF THE HE SAID THE GOVERNMENT SHOULD BE ANYTHING BUT

ΤΟ UNDERLINE INCREASES IN SPENDING ON THE SOCIAL SERVICES. POINT, RECURRENT EXPENDITURE OVER THE LAST FIVE YEARS TO 1994/95 HAVE INCREASED:

ON HEALTH, TO $17.1 BILLION FROM $6 BILLION, AN INCREASE OF 70% IN REAL TERMS;

ON

WELFARE. SOCIAL

TO $11.3 BILLION FROM INCREASE OF 53% IN REAL TERMS; AND

$4.4

BILLION,

AN

ON EDUCATION, TO $25.8 BILLION FROM $11.2 BILLION, AN OF 36% IN REAL TERMS.

INCREASE

LOOPHOLE IN SERVICE COMPANIES MUST BE CLOSED

#

THE LOOPHOLE USED BY SOME WELL-OFF PEOPLE TO PAY LESS

THE FINANCIAL SECRETARY, MEANS OF SERVICE COMPANIES MUST BE CLOSED, THE HON SIR HAMISH MACLEOD, SAID TODAY (WEDNESDAY).

TAX BY

ΤΟ $500

THERE MAY BE OVER 4,000 CASES WHERE SERVICE COMPANIES ARE BEING USED TO AVOID TAX, INVOLVING AN AMOUNT OF TAX OF ABOUT $400 MILLION A YEAR.

W

RESOURCES

'I WOULD FEEL FULLY JUSTIFIED IN PUTTING SIGNIFICANT

OF AND SOME HARD-HITTING LEGISLATION IN PLACE TO GO AFTER THAT AMOUNT

DEBATE IN THE MONEY." SIR HAMISH SAID, WHEN CONCLUDING THE BUDGET LEGISLATIVE COUNCIL.

THE PUBLIC'S THE SYSTEM WAS TAX THAN

HE SAID THERE WAS ALSO THE CORRODING EFFECT ON FAITH IN THE TAX SYSTEM, IF IT WAS PERCEIVED THAT UNFAIR, AND SOME WELL-OFF PEOPLE GOT AWAY WITH PAYING LESS

OTHERS,

/"THIS LOOPHOLE