(ii) inserting at the end the following
"For the year of assessment
1987/88 and subsequent years
of assessment
- 10 per cent".
12.
For the purpose of calculating net chargeable
income under section 63C(1) of the principal Ordinance in
order to ascertain provisional salaries tax for the year of
assessment commencing on 1 April 1987 the references in
sections 12B(1)(b) and 2(b) of the principal Ordinance to
section 42B(1) shall be read as if they referred to section
42B(1) as amended by this Ordinance.
Explanatory Memorandum
The purpose of this Bill is to amend the Inland
Revenue Ordinance to give effect to the proposals in the
1987 Budget to -
(a) reduce the standard rate of tax from 17% to 16%
(b)
(clause 9);
combine the existing basic and additional
personal allowances to form a new basic allowance
and set the additional personal allowance at
$5,000 for single persons and $10,000 for married
persons. The new additional allowances will be
progressively reduced where an individual's
income exceeds in the case of a single person,
$34,000 and $70,000 in the case of a married