8.
My
first
proposal
profits tax from 16.5% to 17.5%.
is to increase corporate
This is a modest increase
which leaves the rate of profits tax a full percentage
point below its historical high. This increase will have
local or international
no significant impact on either
enthusiasm to invest in Hong Kong.
>
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
are currently at an all-time low. They are equal to only
household incomes. For businesses, rates are
about 2% of
less than 18
will have a
of average operating expenses. My proposals
negligible impact on the rate of inflation as
And rates in Hong Kong Vill
measured by the CPI(A).
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
Second, to ease the burden on those liable to
families.
salaries tax.
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