Budget flaws

PUBLISHED : Saturday, 12 March, 1994, 12:00am
UPDATED : Saturday, 12 March, 1994, 12:00am

I AM sure the whole territory was well pleased with Sir Hamish Macleod's promise that Hong Kong people would share the success of the territory, when he was interviewed the day before the new Budget was released, and people's elation became greater when they heard about the tax cuts mentioned in the new Budget.

It is true, that the tax cuts will guarantee that people have more disposable income.

However, if you consider the expenditure, survival especially in housing (one of the basic necessities, unless we plan to fight with the street sleepers for a space under the flyovers), the new Budget does not help the public much, especially the sandwich class whose savings could never catch up with the ever rocketing house prices.

I am annoyed that the Government has done little to control house prices.

The present mortgage where the buyers pay 30 per cent of the price as downpayment (encouraged by the Government) shatters the hope of many, especially those of the sandwich class planning to get married.

I may be exaggerating, but this is the class that has hopes of buying even a tiny flat, but whose hopes are often not realised, because the Government is shirking its responsibilities.

I would, therefore, like to see the Government impose a heavy Value Added Tax on every housing transaction and re-consider the prices of the Home Ownership Flats so that the needs of the public are met, instead of matching market prices which are far from reasonable.

The Government should also extend its Home Purchase Subsidy Scheme so that it reaches a wider sector.