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Sir, I have pleasure in supporting the Motion.
Mr. Peter POON:
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POON:
In the
Sir, I welcome the Financial Secretary's Budget for 1988-89, which demonstrates his comprehensive approach to fiscal prudence. beginning of his speech, he rightly warned us of Hong Kong's vulnerability as an open economy to world economic downturn expected in 1988 or 1989.
Ow
His
We had two consecutive good years in 1986-87 and 1987-88, and now GDP
13.5 growth of per cent in 1987, is one of the highest in the world. proposals for 1987-88 have the three laudable objectives of considerably easing the tax burden for businesses and individuals, whilst increasing expenditure on public services and maintaining the value of our casoures, 1987-88 was a good year for Hong Kong with vibrant exports and a booming
local economy.
One must remember that a substantial part of the surplus
bull
reserv
is from the unusual high revenue from stamp duty in the boom market for most part of the year and our strong exports under full capacity Despite the forecast decline in the growth of our GDP to 5 per cent h 1988, the Financial Secretary still forecasts substantial surpluses of 20 $3.8 billion on General Revenue Account and per capital GDP. of HK$72,000 c. 7
(equivalent to US$9,200) for 1988, after these revenue proposals.
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This is
most encouraging and with Hong Kong's flexibility, adaptibility and originality; I am confident that we can achieve such goal.
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I am, however, less certain about the medium range forecast to 1990
1991,
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because a lot depends on whether the world economy will be on a down_
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wave in the years to come and whether inflation in Hong Kong can be kept
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of labour is already a recently serious problem.
under control so that our competitiveness will not be lost.
at present a
Shortage
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The
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The rest of my speech will be confined mainly to various aspects of taxation. In general, the Financial Secretary has given tax concessions
$2.2 estimated to cost $20 billion in 1988-8
$3.2 billion in a full year to benefit most sectors.
substantial
amounts.
The business sector gets 1 per cent reduction in the tax rate on business profits. This is in line with the trend in other
1988-87, +2.02-billion-extra, and
These are very
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