2
3
4
5
6
7
8
NP 9
10.
11
12
13
14
15
.16
17
18
19
20
21
lo 22
23
24
2.5
26
27
28
29
30
31
32
33
34
35
36
direct tax. On the question of broadening the base for indirect tax,
I think indirect tax is a relatively stable source of revenue which
will be less vulnerable to the ups and downs of the economy because it
is a levy on basis of consumption and not on the amount of profits
made. It is also more equitable and has the effect of encouraging
thrift.
In addition, the increase of indirect tax can have other positive effects, such as promoting the spirit of frutality, reducing our over-heated domestic economy and preempting difficulties that may arise when our economic development slackens. Basically,
the Budget has taken care of the interest of every sector in the
community, particularly those in the middle-income group. The
concession to stamp duty proposed by the Government to lighten the
burden of small and medium flat owners will definitely boast the interest of property buyers and people in the middle-income group will be encouraged to buy their homes. Besides, it will no doubt give our property market'a shot in the arm' and act as a stimulus to the demand in properties and to this negative evidence that our economy will slow down next year. As a matter of fact, this forecast in the downturn of our economy fits in with the actual circumstances
because the Budget has provided very few incentives to new investments,
nor has it down much to accelerate the paces of both local and overseas investments. ¡As for additional allowances for Working Wives,
I believe it will encourage more women to work. It will also be helpful
to alleviate the problem of labour shortages and in maintaining the
principle of equity in taxation. Although the reduction of tax on corporate profits will continue to strengthen the investment environment of Hong Kong and maintain our edge in attracting overseas capital, there is a need for more vigorous approach. As our profits tax has always maintained or remained at a low level, it will be more realistic if our Government will provide further assistance for the
development of our commerce and industry.
Our
Sir, stability is the basis of prosperity. A stable political and social atmosphere will foster the continuation of economic prosperity.
Thus, law and order plays an equally important role as economy,
culture and medical care do during the nine years leading to 1997 and
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