Sir,
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DRAFT SPEECH BY HON S L CHEN, CBE, JP
LEGISLATIVE COUNCIL
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27.3.85
Budget Debate 1985
We have not had a budget surplus since 1981-82. We have
become leaner but, after these years of hard work, fitter. I must congratulate the Financial Secretary for his consistent and
successful efforts in reducing the gap over the years and I am
glad that he is predicting a balanced budget for 1986-87. In
fact, given his usual conservative nature, he might just achieve
that sooner.
In the Budget debate last year I criticized the Financial
Secretary for taking a complete U-turn from his approach adopted in 1983-84 when nearly all increases in tax were raised without impinging on the income sensitive elements of the taxation
system. I said in my speech that I would have preferred to see a package of tax increases with a higher contribution from indirect
taxation. I am gratified to note that in the Budget proposals for
1985-86 he has returned to indirect taxation.
I generally support the Budget proposals. However
having regard to the Financial Secretary's declared principle in his last year's Budget Speech, in which he said "taxation should
be moderate, falling more heavily on the better off", I cannot
help feeling that this year's Budget proposals have not gone far
enough towards "falling more heavily on the better off". What I
am really saying, Sir, is that the well off have not been asked to
contribute more to the public coffers, given the low tax base in
Hong Kong.
In last year's Budget debate I called upon the Government
to levy heavy taxes on commodities which only the well off can normally afford and had suggested a number of options for raising
more indirect taxation without causing undue hardship to the men
in the street. Today I do not wish to dwell on this point beyond repeating what I have said above, that the Financial Secretary has not gone far enough in this direction.
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