TNAG-1727-FCO40-2440-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 109

3

I dare say it is also the expectation towards you, Sir, from all the people of Hong Kong.

le Option for separate Taxation by Married Couples

lc.

lo

The revised Student Travel Scheme leads to another issue

of separate taxation for married couples. According to Government's plan, applications for student travelling subsidy will be subject to a means-test on the parents. This implies that all children from middle income families will no longer be eligible for

such subsidy. In other words, does it mean that all families which have to pay tax will not be entitled to such benefit in the future?

Would it be fair for them? Why couples have to pay more tax by

combining their income for assessment while they have no right for

not such minor benefit in return? Why doesn't the Government, further increase the child allowance to compensate their loss in the

revised Student Travel Scheme?

The Financial Secretary has been insisting on his viewpoint on combined taxation for married couples. He considered family income should be taxed as a combined unit, otherwise the problems involved would be very complicated. The viewpoint of the public is very clear. They think they should not be charged more

after marriage.

In fact, the Financial Secretary has adopted a more equitable and improved measure by proposing an allowance for working wives. What married couples insist is that they should not pay more tax after marriage. Their response towards the revised Student Travel Scheme has strengthened this belief. As the Financial Secretary has indicated that he is prepared to consider further the problem of separate taxation for married couples, why

not doesn't the Government widen the taxation bands from the existing $10,000 to $20,000 next year. This measure will provide ready solution to the problem of paying more tax after marriage and can be taken as a long-term or temporary arrangement by which the public might be convinced to accept. After all, it is worthwhile

trying.