TNAG-0622-FCO40-770-Budget-of-Hong-Kong-1977 — Page 89

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groups to contribute their appropriate share to the revenue.

In the light of the above arguments, the majority of the

Unofficial Members feel that, while they agree that the present

level of basic allowance should be maintained, Government should

consider increasing the supplementary allowance for a single person

to a level between $3,500 and $4,000, instead of $2,500, and that for a married couple to between $7,000 and $8,000 instead of $5,000.

If need be, the claw-back could be increased to a slightly higher percentage of, say, 25%. This percentage still compares favourably

with the claw-back of 100% for the Lower Income Relief applicable

in 1970/71.

Sir, we realise, of course, the most important factor in deciding the quantum of a tax-free allowance is its effect on revenue

yield. We also realize that to fix its level purely on the current cost of living could give rise to serious and complicated problems. However, we hope in considering our suggestion, that Government will bear in mind the weight of indirect taxation on the middle and lower

income groups.

Sir, with these remarks, I support the Motion.