THE ECONOMY
is calculated on a sliding scale which progresses from two per cent to 21 per cent on the first seven segments of net income (that is, income after deduction of allowances) of $10,000 each and then to 25 per cent on the remaining net income. No one, however, pays more than 15 per cent of their total income. Earnings of husband and wife are reported and assessed separately. However, where either spouse has allowances that exceed his or her income, or when separate assessments result in an increase in salaries tax payable by the couple, they may elect to be assessed jointly.
The owner of land or buildings in Hong Kong is charged property tax at the standard rate of 15 per cent on the actual rent received, less an allowance of 20 per cent for repairs and maintenance. A system of provisional payment of tax similar to that under the profits tax and salaries tax applies. Property owned by a corporation carrying on a business in Hong Kong is exempt from property tax but the profits derived from the ownership are chargeable to profits tax.
Business registration fees, which form part of the revenue from fees and charges, are also collected by the Inland Revenue Department. Business registration is compulsory for companies incorporated in Hong Kong, overseas companies with a place of business in Hong Kong, and businesses operating in Hong Kong, except those run by charitable institutions and licensed hawkers. The annual registration fee is $900. Exemption from payment is granted where the business is small. Every branch of a business is required to obtain a branch registration certificate and pay an annual registration fee of $15. In addition, a levy of $100, payable to the Protection of Wages on Insolvency Fund, is imposed on each business registration certificate issued to a business or its branch.
Science and Technology
As Hong Kong's industry, economy and society become more complex and sophisticated, there is a need to pay greater attention to the part that modern science and technology can play in furthering development. The government believes that the ability to adopt technological advances and new applications is critical to the prosperity of an international trading city such as Hong Kong.
To ensure that Hong Kong keeps up to date with rapid technological changes and that the best advice is obtained in this area, a Committee on Science and Technology has been appointed by the Governor. Its purpose is to seek out and develop new scientific and technological ideas which are of direct relevance or potential long-term benefit to Hong Kong. The committee's members are from the academic and business sectors as well as from government departments whose work involves a significant scientific and techno- logical content.
The main emphasis of the committee's work has been on information technology and biotechnology. It has commissioned consultancy studies on Hong Kong's need for supercomputing facilities and the potential for a biotechnology industry in the territory and will soon be making recommendations to the Administration. The committee is also conducting a comparative study of the science and technology infrastructure in Hong Kong and neighbouring countries. The committee is concerned with the safe use of technology and has published a draft code of practice on laser safety. It is now reviewing controls on toxic substances, in particular in household products. It has plans for an International Technology Fair to strengthen Hong Kong's image in technology and is also concerned with stimulating interest in science and technology among young people.
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