TNAG-1858-FCO40-2633-Legislative-Council-of-Hong-Kong-memoranda-and-minutes-of-me-1989 — Page 162

HONG KONG LEGISLATIVE COUNCIL

一九八九年七月十九日

香港立法局

19 July 1989

49

Let us focus for a moment on the costs this Bill will generate. It will:

increase the cost of the Inland Revenue Department's personnel complement by a reported amount which I believe to be ultra conservative of $11 million per year, each year, from now on.

involve a one-time capital cost that is said to be at least $28 million for upgrading the Inland Revenue Department's computer capacity to process the 200 000 additional returns.

increase the space needs of the Inland Revenue Department and thus generate permanent added space costs.

In my view, this Bill is an example, a sad example of how political forces can generate momentum and get themselves into a position where they end up supporting something that is unnecessary and not sought by the very people who are supposed to benefit from it.

I can only sympathize with our Administration. They know that this piece of legislation will complicate the tax law; they know that this will create much. more work for them and that the legislation is completely non-cost effective. They have had to comply with the instructions given, and come up with the best possible legislation to handle the issue that was given to them by our political leadership.

I regret to say that by now there may be too much momentum behind this Bill for it to be cancelled, or for there to be any significant modifications. However, I cannot be a party to the introduction of complicated tax legislation to Hong Kong when there is no real or apparent need for it.

I am a tax professional. I have worked with many tax systems in many countries. I have always been extremely proud of Hong Kong's tax system. It has been very simple to administer, very fair to all taxpayers, and a system with one of the lowest collection costs in the world.

I am also a married woman and I find the measure entirely unnecessary and totally irrelevant for the establishment of equity in the majority of family units, in the context of presentday Hong Kong.

Sir, I therefore stand to object to the Bill.