TNAG-1728-FCO40-2441-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 242

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Mr. Richard LAI (in Cantonese):

Sir, the Financial

Secretary has brought us a Budget that has generally

taken care of the interests of all social strata. Although Hong Kong has experienced an historical stock

5 crisis last October, our economic performances on the

whole are encouraging. Although the Budget fails to

balance the interests of different parties, it has given us some very welcome proposals. For example, the reduction of our standard tax rate, the increase

of various allowances and the increase of expenditure

on social and medical expenditure. All these proposals reflected some benefit gained from an economic boom.

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As I said last year, the Budget is prepared along the conventional lines of public finance policy, but it lacks farsightedness and it fails to use our existing resources

Suture to tie in with our economic development. This is indeed most regrettable. For the past two years we achieved a two-digit economic growth rate and we have achieved a

last year 13.5 per cent of growth rate, which is more than the 11.2 per cent in 1986. with such a big surplus, the proposal of the Financial Secretary to increase various tax allowances to protect the lower middle-income class from inflation should have been most welcome, yet the small

scale of adjustment cannot (inaudible) disappointment at

the inadequacy of the relief.

الماجسر معلمه منة من

issue

28 Now I turn to the controversial .[topict of separate

for coubles

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taxation.

sencept on wolke & pax Allowance can be regarded

This has already attracted a lot of comment

centred around last year but the Budget this year again detailed the concept on the grounds of certain insolvable difficulties. The proposed Marrie

as a form of compensation in lieu of separate taxation

34 and as a simpler and more practical measure enabling

married women to share the fruits of a booming economy

just like any other taxpayer. The tax allowance for

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(୭)