60'd

8.

My

first

proposal is to increase corporate

This is a modest increase

profits tax from 16.5% to 17.5%.

which leaves the rate of profits

tax a full percentage

This increase will have

point below its

historical high.

5

no significant impact on either

enthusiasm to invest in Hong Kong.

local or international

9.

I have also decided to

increase the general

rates for the coming year by a half of one per cent. This

will mean that the total charge to rates will be 6%. Rates

currently at an all-time low. They are equal to þnly

about 2% of

are

less than 18

will have a

household incomes. For businesses, rates are

of average operating expenses. My proposals

negligible impact on the rate of inflation as

measured by the CPI(A). And rates in Hong Kong vill continue to be very low by International standards.

10.

These were the tax increases. But I was also

able to propose tax cuts. My tax concessions have two

aims. First, to abolish taxes on certain non-luxury items

which directly affect the cost of living for ordinary

families.

salaries tax.

Second, to

ease the burden on those liable to

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