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larger than originally predicted fiscal surplus.
sir, the Financial Secretary has again mentioned the possibility of widening the tax base in future to reduce the sensitivity of government revenue to sudden changes in the economic climate. This is a complex and often also emotional subject. I was in fact surprised about the degree of emotion exhibited yesterday by some honourable colleagues whom I had previously credited with great analytical powers; but then I remembered that this is of course an election year in Hong Kong. I am pleased that the Financial Secretary has shown both mestly courage to pursue his vision, despite the by and large negative comments he heard on this subject in this chamber last year, and again this year, and has retained the patience not to rush into what is always prone to be a political minefield. And whilst I did
Akebticism express some scepticism myself in the last debate, especially about the wisdom of risking accusations of an inequitable increase in the tax burden for the
less affluent members of our society, the events of last October have led me to reconsider. particularly in Hong Kong, where a minority only is subject to direct taxation and more are again excluded after this Budget, the regressionary element of an indirect sales tax cannot be considered to be as prominent as it might be elsewhere. By the same token, because our current tax base is so narrow, we are vulnerable. The argument on inflation could be a red herring,, and I hope that both this Council and the public at large will at least support the Financial Secretary's continued investigation into a scheme that could achieve his stated objectives. Objectives and this should be emphasised particularly 34 since in her speech the Senior Member suggested otherwise 35 objectives which did not include the generation of more
revenue. Indeed, an indirect tax base should help te
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