TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 66

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Revenue Proposals

As expected, the Financial Secretary has wisely refrained from increasing direct taxation. It appears that most people would consider as acceptable the 5 reasons he gave for his proposals for raising the $1.2 billion necessary to meet the estimated revenue shortfall by selective increases in indirect taxation.

Described as a mild tonic, the 4 concessions on personal taxation will appease, at least for the time being, critics who clamour for a more sophisticated system of taxation designed to bring about a more equitable re-distribution of wealth. In these difficult times, these concessions, which would cost $150 million in 1985-86 and $210 million in a full year, must be considered generous and viewed as an attempt by the Financial Secretary to reduce further any inequity that may be inherent in our existing system. Hopefully, these may well If the forecast for be the first of more concessions to come.

1985 is near its mark, perhaps in the next budget, the Financial Secretary might find it possible to re-consider the

Even a question of separate assessment for married women. phased programme will surely be hailed as a victory for the fair sex and for common sense.

The proposal to re-introduce duty on cosmetics and non-alcoholic beverages is not cosmetic. If approved, it will enhance the general revenue by $100 million and $210 million respectively. Naturally, certain sectors of the community are not amused, but it must be remembered that revenue has to be raised. It would be wrong to assume that the best things in life are necessarily always free.

Anti-avoidance legislation

Many would welcome the Financial Secretary's intention

If our tax is to be

to introduce anti-avoidance legislation.