TAX allowances should be given to encourage employers to invest in people, independent legislator Christine Loh Kung-wai told the Government yesterday. At a meeting with Financial Secretary Donald Tsang Yam-kuen on the latest Budget, Ms Loh said allowances could boost productivity in the increasingly important service sector. Such allowances are provided for businesses to invest in equipment and machinery that increase productivity, she said. She urged the Government to develop specific ideas for tax concessions that rewarded productivity investments in the service sector. To help small businesses, Ms Loh urged the Government to abolish the annual charge of $250 for business with gross turnover of less than $40,000 per month.