THE widening gap between the rich and poor is alarming, and the Government ought to review the tax structure and find ways to reverse the situation, said the liberal party Meeting Point. Speaking after a 45-minute session with the Financial Secretary Hamish Macleod, party member Fred Li Wah-ming said Hong Kong was long overdue for a review of the tax system, which was last studied in 1976. By refusing to look into it, the Government had implicitly allowed income inequality to worsen and had given up using tax as a tool for income distribution. He said the concept of cost recovery to social services and the maintenance of a rate of return for public utilities further aggravated the burden of the poor. Mr Li said the party had suggested to Mr Macleod that the personal allowance for salary tax be raised to $72,000 from $56,000 and that tax rates progress at a more moderate scale. Mr Li said the Secretary promised to review the tax bands but failed to agree on the $16,000 increase for the personal allowance. The party also suggested the Government explore ways to broaden the tax base.