(17865) Dd.145178 400m 5/73 G.W.B.Ltd. Gp.863
NOTHING TO BE WRITTEN IN THIS MARGIN
CONFIDENTIAL
Summary of Revenue Proposals
1979/80
Increased yield of Earnings and Profits Tax
(standard rate increased from 15% to 18%, question 6)
Increased yield of Excise Duties, General Rates and
Internal Revenue (rates increased by 12% (not 121 percentage points), question 8)
(HK million at 1976 prices)
574
319
Yield of new tax on 'luxuries' at 15% (question 9)
340
1233
1260
Revenue sought (question 6)
粥 Thus an ad valorem stamp duty of (say) 2% on a HK$100 con-
tract note would yield HK$2.00. A 12% increase in the
duty produces a revised yield of HK 2.25. The revised rate of duty is 2% +121% of 2%, that is 21% (not 141%), an increase of a quarter of a percentage point only.
CONFIDENTIAL
Page 30Page 31
NOTHING TO BE WRITTEN IN THIS MARGIN