TNAG-1728-FCO40-2441-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 243

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married women who are working has another meaningful implication. It encourages more women to work and engage themselves in production; although it is fore- cast that there will be a slower growth economically

we still face the problem of labor shortave. The reduction in tax will next year, this means to encourage women to work wit help ease some manlower shortage.

economic,

Lease some manpower shortage! The objective of

for exples

alleviate separate taxation is to lessen the financial burden like to

for emples

for families, but I would point out that we must further study the issue to find out whether separate taxation would really benefit everyone in our society. I would/ala like to point out that once it is implemented we must

for couples have a flexible approach. Separate taxation does not necessarily mean less tax than combined taxation.

eka

This

is influenced by two elements of difference: first of all,

total the amount of combined income and, secondly, the proportion between the respective incomes of husband and wife. The foreseeable result is that high-income families and low- income families may not get the same benefits under the system of separate taxation. For some families this may have a counter-effect. In cases where the income of the

doubles husband is two times the wife income, there would be different bearings on the amount of tax to be paid under either a separate or combined taxation system, so I am

that the above two factors afraid this will complicate our tax system. If we just

the Bublic look at the benefits to our society, then the intro- duction of optional separate taxation would benefit everyone since the couples would have the choice of a calculation method that is more advantageous to them. Doubtless, whether we have separate taxation or combined create tax assessment there will be some problems of financial and administrative arrangements for the Government. example, how are we going to distribute various tax allowance items and the right of, custody of children

moreover, it will bring about after divorce? and also me further incre

ncrease in administra-

YeLoxal tive cost All these will bring some problems to the

society.

and

For