§ Mr. Kenneth Clarkeasked the Secretary of State for Foreign and Commonwealth Affairs what studies are being carried out by the Government of Hong Kong into possible alternatives to the possible necessity of raising the standard rate of income tax there from its present 15 per cent.
§ Mr. RowlandsThe Hong Kong Government keep taxation matters under constant review. They have recently appointed a committee to review the Inland Revenue Ordinance because it is doubtful whether the existing direct tax system is as productive as it could be, given the tax rates. The question of what rate is appropriate in any given circumstances is not included in the committee's terms of reference.