COMMITTEE TO REVIEW INCOME TAX ORDINANCE

Mr Lee Choon Eng asked the Financial Secretary whether and what action has been taken to set up a Committee to review the Income Tax Ordinance (Cap. 166).

Mr T. M. Hart: Sir, the hon. Member will recall that during the debate on his motion at the May sitting of the Assembly, the Hon. the Chief Minister said that taxation policy was the sole responsibility of Government and that he was not prepared to delegate this responsibility to any independent body. Again the hon. Member will recall that during the same debate the Acting Financial Secretary said that a suitable committee already existed in the Economic Committee of the Council of Ministers and indicated that this Committee would be charged with the task of examining the suggestion made by the hon. Member. Sir, the answer to the hon. Member's question is therefore that a committee is already in existence and that it will consider suggestions as soon as the necessary background material has been collected.

Mr Lee Choon Eng: Mr Speaker, Sir, can the Hon. the Financial Secretary tell us when will the report of this Committee be made public or when the public will know who are the members of this Committee?

Mr Hart: Sir, I can tell the hon. Member the composition of the Committee. It consists of the Hon. the Chief Minister, the Hon. the Minister for Communications and Works, the Hon. the Minister for Commerce and Industry, and myself, and at all meetings of the Committee the advice of the Economic Adviser is obtained and in this particular instance the advice of the Comptroller of Income Tax will also be obtained.

I do not know when the Committee will be in a position to report to the Council of Ministers (that being the body to which it must report). We are at the moment in the process of obtaining as much information from neighbouring and other countries about schemes for dependants' allowances which are in existence there and about their experience in operating these schemes. This information is voluminous and will take some time to digest and consider. In these circumstances, I regret that I cannot give any indication when the Committee will be able to report to the Council of Ministers.

Mr Lee Choon Eng: Mr Speaker, Sir, can the Hon. the Financial Secretary tell us has there been any meeting held so far?

Mr Hart: The Economic Committee of the Council of Ministers of course meets constantly, Sir, It has not yet met on this particular question of dependants' allowances for the simple reason that the basic information which I have detailed has not yet been obtained in full.