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and depositing companies be increased by 8 per cent is potentially dangerous and certainly unfair.
After
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cent rise and depositing companies with a 13 per cent. The timing of the proposed fee increases only adds insult to injury. Earlier this year banks in Hong Kong bore the brunt of the defence of the link exchange rate jeopardising their business. They spent millions on negative interest rates, reprogramming computers, informing and soothing irate customers and then being faced with the threat of litigation over the legality of the whole system. Yet, as one influential reporter quipped; The Budget proposals prefer brandy to banks.
What is the purpose? killing the goose that lays the golden egg? [Instead of undermining our banks and depositing companies, why does the Administration not look for ways to help the financial sector?
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moment our banks are digging deep into their pockets to meet the stringent new capital adequacy ratios, set to 22 take effect later this year. At the same time banks in 23 Hong Kong are also compelled to make significantly larger
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provision for doubtful sovereign risk loans in response to the world debt crisis. While we do not want to be a dumping ground for every international bank's bad debt, 27 the Government could help our financial sector by taking a more sympathetic view of the deductibility and the method of evaluation of loans booked through Hong Kong.
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In setting tax policy the Administration should also pay closer attention to the wishes of the people. Why does a government which objects to the "lame duck" label give the impression of being an ostrich when it comes to
This issue has separate taxation for married couples? been raised almost annually since. the late 1970s and the
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