by a further reduction to 0.4% to help to maintain the competitiveness of Hong Kong's securities market. This will cost the revenue $400 million a year. I expect the industry to pass on the full benefit to investors. Their response will influence our attitude in
future years.
Implementation
107. My proposals on dutiable commodities come into effect today under appropriate Public Revenue Protection Orders. Under similar authority, my proposals on rates, profits tax, personal allowances, stamp duty and entertainments tax will come into effect on 1--- April this year. The amending bills required to bring these proposals into law will be introduced into this Council next week, or where resolutions of this Council are required, at an appropriate later sitting. In all cases, adequate time will be given to Members to consider the measures before the debates on the bills are resumed and the resolutions introduced.
Commentary
108. Unusually, I would also like to comment on two items which are not included in my Budget - sales tax and an increase in salaries tax. On sales tax, I have made it clear before that I do not regard this as attractive at a time of relatively high inflation, and it is not currently under serious consideration. On salaries tax, I am glad to be able to assist taxpayers by not raising it at the same time as the increase in profits tax, but I should warn that the resulting differential between salaries and profits tax is probably at about the maximum, beyond which avoidance is likely to be a problem.
CONCLUSION
109. In conclusion, I would say this. We must have confidence in ourselves, and in our ability to continue to create economic success and to enjoy its rewards. We should not fall into the trap of exaggerating differences or problems which do exist, or we risk causing others to lose confidence in us. I do not underestimate the effect debates in this Council, or in the wider public arena, can have on public perceptions and public confidence.
110. I have dealt with the social services, and the real increase in planned spending in those services, at some length, precisely because some of the public debate on those issues was being conducted in such simplistic and misleading terms that the public was in danger of being led to believe the opposite of the truth. The truth, I must reiterate, is that we remain committed to helping the man in the street, and to increasing spending on services which benefit him. This commitment has been one of the great strengths of the Hong Kong Government, and this will continue to be the case. But along with this must go a willingness to re-appraise priorities in all areas. Resources are limited, and there must be no sacred cows created by special interest groups. We must always be ready to redeploy resources to where they are most needed.
111. I have also sought to reassure the business community that past, or indeed future political change does not mean that we are about to embark on radical changes in
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