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Solid support for simple tax system
There is solid support for the Government's overall aim of maintaining a simple and predictable tax system, based on low tax rates, the Financial Secretary, the Hon Sir Hamish Macleod, said today (Wednesday).
"But I entirely accept that this still leaves considerable scope for choices to be made, and improvements introduced."
"That said, one key to financial stability is likely to continue to be maintaining the revenue in real terms from a mix of sources, be they fees and charges, duties or taxes."
Sir Hamish said it was largely for this reason that he had proposed increases in duties this year in line with inflation.
He explained that the tax concessions this year sought to achieve a balance between generosity and caution; between leaving money in the pockets of taxpayers, especially those with extra financial responsibilities; and maintaining strong reserves.
"I am encouraged that most Members generally believe that I have found a reasonable balance, though obviously not agreeing in every respect, on every detail."
He said Legislative Council Members had made a number of useful suggestions about ways to further improve the tax system, for example, the need to provide greater relief for certain groups of taxpayer, and the need to broaden the tax base.
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"We will look at all these suggestions carefully," he said.
End/Wednesday, March 29, 1995
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