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Wednesday, March 1, 1972
MAXIMUM RATE OF ESTATE DUTY
Reduction From April 1 Proposed By Financial Secretary
The Financial Secretary, the Hon. C.P. Haddon-Cave proposes a reduction
in the maximum rate of estate duty from 20 per cent to 15 per cent.
This is one of the four tax concessions announced by Mr. Haddon-Cave when he presented his Budget for 1972-73 in the Legislative Council today.
The Financial Secretary said he would be introducing a bill into the Legislative Council to reduce the maximum rate of estate duty in respect of
deaths occurring on or after April 1, 1972.
At the same time, the present 14 steps ranging from $200,000 to $2,000,000
will be amended to eleven steps ranging from $200,000 to $1,000,000.
The new scale will provide worthwhile relief to all estates exceeding $300,000; for example, the rate applicable to estates of 3500,000 will be reduced from ten per cent to seven per cent representing relief of $15,000 in duty.
Mr. Haddon-Cave said it would also help to discourage Hong Kong residents
from taking avoidance action by transferring assets overseas before death.
The Financial Secretary said the annual cost to revenue was very
difficult to estimate, but was likely to be between $1.5 million and $3.5 million.
For 1972-73 he was assuming it would be $3 million.
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