Lawmakers remain divided over the proposed land departure tax, which officials claim is crucial to public finances. The Democrats and the DAB joined forces to reject the proposed levy while the Liberal Party and the Progressive Alliance gave cautious support for the unpopular proposal to be explored further. A motion rejecting the levy and a middle-of-the-road amendment were both vetoed after a four-hour debate last night. Moving the motion, Lau Kong-wah of the Democratic Alliance for the Betterment of Hong Kong warned a departure tax would imply the SAR and China were 'two countries'. He said it would also go against Tung Chee-hwa's policy of bolstering development with the Pearl River Delta. The Government, said Mr Lau, should boost the economy by stimulating domestic consumption rather than raising revenue with a new levy. Democratic Party vice-chairman Dr Yeung Sum criticised the Government for committing billions of dollars to the Disneyland project while taxing the public to boost its coffers. But Secretary for the Treasury Denise Yue Chung-yee maintained that the tax could widen the narrowing tax base and turn the deficit into the black in the medium term. She said 9.4 per cent of salary taxpayers paid the standard 15 per cent rate in 1994-95, but the figure plunged to 0.3 per cent this year. About 3,000 of the 60,000 firms paying profit tax accounted for 80 per cent of total revenue from the tax. 'We are relying on an extremely small number of individuals and companies. Is this tax structure appropriate?' she asked. Officials are now examining details such as the level of the levy and when it should start, as well as exemption and enforcement. 'Members should not reject the proposal outright without first considering the details,' she said. Liberal Party chairman James Tien Pei-chun urged the Government to ensure the levy would be affordable. Independent legislator Eric Li Ka-cheung wanted the Government to explore the feasibility in light of the narrowing tax base. But his amendment calling for careful consideration and consultation with Legco could not secure majority support in two separate votes. Mr Lau's motion was also rejected.